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Stocks

Daily Price Limit

Futures contracts, a fundamental tool in financial markets, have a specific limit on how much their prices can change in one trading session. This limit, known as the daily price limit, sets the maximum allowed price advance or decline compared to the previous day's settlement price. It serves as a safeguard against extreme price fluctuations and provides stability in the market. Understanding this concept is crucial in grasping the dynamics of futures trading.
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