daily trading limit

daily trading limit definition - finance
A maximum rise or fall in prices that futures or options contracts are allowed to have in one day. When the daily trading limit is met, the trading is stopped on the instrument for the day. Exchanges create their own rules governing daily trading limits.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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