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Limit Move
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Limit Move
The maximum price change permitted by an
exchange
in a single trading session. Many futures exchanges impose limits on price changes in
physical commodities
except in the
spot month
. Except for the Japanese exchanges, daily
price limits
in
financial instruments
were uncommon and were being phased out until the 1987
market
break led to renewed
interest
in
circuit breakers
and price limits. See also Circuit Breakers,
Limit Up/Limit Down
.
Glossary
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