Variable Price Limit

DEFINITION of 'Variable Price Limit'

A schedule of price variations above or below the accepted limits determined by the commodities exchanges for any one trading day.

BREAKING DOWN 'Variable Price Limit'

Variable price limits allow contracts to trade past their maximum daily changes. Exchanges determine whether a futures contract be assigned a variable price limit as it is generally used for commodities with high transaction volumes.

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RELATED FAQS
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    Explore sensitivity analysis and how this method considers different variables to determine a course of action based on statistical ... Read Answer >>
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    Commodities are extremely important as they are essential factors in the production of other goods. A wide of array of commodities ... Read Answer >>
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    Learn the characteristics unique to electricity trading as a commodity and how investors can trade electricity futures on ... Read Answer >>
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