price limit

Definition

The highest and lowest prices that a commodity or option is permitted to reach in a given trading session. Once reached, no trading occurs on that commodity or option until the following session. also called fluctuation limit or daily trading limit.

Use price limit in a sentence

The price limit could not be exceeded and if it was then things would probably turn sour for everyone in the company.

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The price limit was reached so the remaining trades would have to be conducted during the following business day only.

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The prices of oranges jumped up to the Price Limit. this stopped trading for the day and made some people millionaires and others very broke.

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daily price limit variable price limit