Options and Futures

Price Limit

In the world of finance, we often come across terms such as "maximum advance" or "decline" in relation to trading contracts. These terms refer to the limit set by the exchange for a contract's movement in a single trading session, based on the previous day's settlement. This limit is known as the Variable Limit and it plays a crucial role in ensuring stability and fairness in the market. So, as investors, it is important for us to understand and keep track of these limits when making trading decisions.

Related terms

Price Limit Order

Understand the meaning and definition of Price Limit Order in the context of stock market, trading, and investments.

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Settlement Price (futures)

Understand the meaning and definition of Settlement Price (futures) in the context of stock market, trading, and investments.

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Cheapest to Deliver

Understand the meaning and definition of Cheapest to Deliver in the context of stock market, trading, and investments.

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Gamma

Understand the meaning and definition of Gamma in the context of stock market, trading, and investments.

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Liquidity Data Bank®

Understand the meaning and definition of Liquidity Data Bank® in the context of stock market, trading, and investments.

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Moving Average Charts

Understand the meaning and definition of Moving Average Charts in the context of stock market, trading, and investments.

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