Exercise Limit
A restriction on the amount of option contracts of a single class that any one person or company can exercise within a fixed time period (usually a period of five business days). This limit is in place so that no one person or company can corner or greatly impact the option market. Investopedia Says:
For example, copper options on the CBOE may have a five-day exercise limit of 5,000 contracts, meaning no person or group can trade more than 5,000 copper contracts over any five-day period. Related Terms:
Chicago Board Options Exchange - CBOE
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Exercise
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