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Limits
The maximum number of speculative futures contracts one can hold as determined by the Commodity Futures Trading Commission and/or the exchange upon which the contract is traded. Also referred to as trading limit. The maximum advance or decline–from the previous day's settlement–permitted for a contract in one trading session by the rules of the exchange. According to the Chicago Board of Trade rules, an expanded allowable price range set during volatile markets.
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- Part of Speech: noun
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- Industry/Domain: Financial services
- Category: Commodity exchange
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