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Derivatives




Maximum Price Fluctuation


The largest change a futures contract can have in a single trading session before a trading halt is triggered. The maximum amount of change (up or down) varies from an underlying to another (commodities, stocks, bonds, etc). It is typically measured from the previous day’s close and is stipulated by exchange rules. Maximum price fluctuations usually do not apply to the nearby delivery month.

This is also referred to as a limit move.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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