position limit

position limit definition - business

position limit

In futures and options trading, the maximum number of contracts that an individual or a group of individuals working together may hold. The position limit is determined by the Commodity Futures Trading Commission for futures, or by the exchange on which the particular contract is traded. Compare trading limit.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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