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Speculative position limit
The maximum position one may hold in futures or option contracts on a given underlying under the rules of a derivatives market.
(1) The limit is expressed either in number of contracts or as a percentage of the open market position. It may apply to all maturities or to specific maturities.
(2) This limit often does not apply to hedgers and the term speculative position limit or speculative limit is then used.
(3) This limit is intended to prevent market cornering.
Translations
Synonyms and variations
- Position limit
- Speculative limit
- Trading limit