Limit Move

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Dictionary Says

Definition of 'Limit Move'

The largest amount of change that the price of a commodity futures contract is allowed to undergo. It is not possible to trade a futures contract at a price either above or below the futures contract price after a limit move. The limit price is set by the exchange on which the futures contract trades.
Investopedia Says

Investopedia explains 'Limit Move'

For example, assume that a wheat futures contract is selling for $3.50, and has a limit of $4. If a severe drought drastically reduces the supply or wheat, the futures price will rise to the $4 limit level, but no higher. This is referred to as a lock limit.

Limit moves are set in place to limit the risk (volatility) in futures price movements.
Search results for

'Limit Move'

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    ... It is never a perfect hedge, however, because rising volatility during an extreme
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  • Measure Volatility With Average True Range

    http://www.investopedia.com/articles/trading/08/average-true-range.asp
    ... Because the volatility is likely to decrease after a limit move, it is actually
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  • Forget The Stop, You've Got Options

    http://www.investopedia.com/articles/optioninvestor/08/options-stops.asp
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  • What are the rules for placing stop and limit orders in forex?

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    ... Conversely, limit or take-profit orders should not be placed so far from the current
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  • Fueling Futures In The Energy Market

    http://www.investopedia.com/articles/optioninvestor/07/energy_market.asp
    ... Although the market frequently will trade in sizes greater than a penny, one penny
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  • Learn To Corral The Meat Markets

    http://www.investopedia.com/articles/optioninvestor/07/meat_market.asp
    ... The exchange also has a limit that is the allowable daily move in a market. For
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  • What's the difference between a stop and a limit order?

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    ... When you place a stop or limit order, you are telling your broker that you don't ...
    at which a stock is trading), but that you want the stock price to move in a ...

  • Commodities: Copper | Investopedia

    http://www.investopedia.com/university/commodities/commodities3.asp
    ... If the limit is reached during the final half hour of trading, trading will resume
    no ... In a copper contract, a .0005 cent move is equal to $12.50, and a .01 ...

  • How does a company move from an OTC market to a major exchange?

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    ... A number of conditions must be met for a company to move from being traded ... NYSE often
    must change its symbol due to NYSE regulations that limit stock symbols ...

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