limit down

limit down definition - finance
In the futures market, the maximum downward price movement allowed during one trading session for a specific future contract. Once a limit down is reached, trading halts unless a sell order comes into the market to change the marketÂ’s direction. Limit up is the opposite of limit down.

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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