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A condition which restricts trading on a futures exchange when prices rise (limit up) or fall (limit down) by the daily price limit imposed by the exchange. While some markets may close for the session when prices are at the limit, a more common practice is to permit sellers to hit limit bids or buyers to lift limit offers after the limit is reached. Occasionally, a market that is locked limit up or down early in a session will move away from the limit in response to the arrival of news and orders. Also called Daily Price or Trading Limit. See Limit Move, Trading Limit (2). See also Lock-Limit, Price Limits.
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