Price Limits in Futures Contracts

Premium

Futures exchanges impose a price limit on how much the futures price can change from the previous day’s settlement price. If traders want to trade at a price above or below this price limit, the trade will not take place.  Till the time the price is outside the limit and no trade can take place, the price is locked limit, and the traders are locked in their positions.

Unlock Premium Content

Upgrade your account to access the full article, downloads, and exercises.

You'll get access to:

  • Access complete tutorials and examples
  • Download source code and resources
  • Follow along with practical exercises
  • Get in-depth explanations