1) An order given by an investor to a broker restricting a particular purchase to a stated maximum price or a particular sale to a stated minimum price. Such a limit order will also be restricted as to time; it may be given firm for a stated period or firm until cancelled.

2) The maximum fluctuations (up or down) allowed in certain markets over a stated period (usually one day's trading); (see intraday limit).

In some volatile circumstances the market moves the limit up (or down). The movement of prices on the Tokyo Stock Exchange is limited in this way as it is on certain US commodity markets. In some markets, if the limit is reached trading is stopped for the day or for a cooling-off period.

See:

limit move, limit up/down.

3) A restriction on a derivatives or commodity exchange on the number of contracts or positions one party can hold.

4) A risk limit in relation to, for example, the credit exposure to a particular counterparty.

• top slicing
• top up
• Toronto Stock Exchange
• total-absorption costing
• total absorption costing
• total income
• total profits
• touch
• touch screen
• town clearing
• TPI
• tracker fund
• trade
• trade balance
• trade barrier
• trade bill
• trade bloc
• trade credit
• trade creditor
• trade creditors
• trade cycle
• trade debt
• trade debtors
• traded months
• traded options