Position Limit
A predetermined position level set by regulatory bodies for a specific contract or option. Investopedia Says:
Position limits are created for the purpose of maintaining stable and fair markets. Contracts held by one individual investor with different brokers may be combined in order to gauge accurately the level of control held by one party.
Each option and futures contract will have varying position limits. Related Terms:
CFTC
Corner A Market
Futures Contract
Large Trader
Manipulation
Option
Position
Small Trader |