On the futures markets, it refers to the maximum price fluctuation a given futures contract is allowed to experience in any one day. The size of the daily limit is determined by the exchange where the futures contract is traded. Limit moves usually take place as a result of an unexpected change in supply or demand. A limit move is measured against the previous day’s close and usually triggers a trading halt.

Limit moves are similar to circuit breakers in the equity markets, and both are meant to provide a specific degree of price stability.