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   Price Limits
   















 

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Price Limits

A system of fixed or variable constraints on some futures price changes in a single trading session. Limits are imposed on most physical commodity futures and some financial futures. The rules of each exchange should be checked to determine how that exchange handles trading when the price goes limit up or limit down. Variable limits may expand price limits during volatile market periods. See also Limit Up/Limit Down, Trading Limit (2).

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