What Is Position Limit?
A regulatory cap on the number of futures or options contracts in a particular commodity that a single trader or entity may hold, intended to prevent excessive speculation and market manipulation.
Position Limit across 2 exams
Position Limit appears on the following exams. Each defines it in the context candidates are tested on:
- Series 3
- A regulatory cap on the number of futures or options contracts in a particular commodity that a single trader or entity may hold, intended to prevent excessive speculation and market manipulation.
- Series 9/10
- The maximum number of options contracts on the same underlying security a customer may hold on one side of the market, designed to prevent market manipulation. Supervisors must monitor customer accounts to prevent breaches of these limits.