Limit Down

Limit Down
The maximum amount by which the price of a commodity futures contract may decline in one trading day.

Some markets close trading of contracts when the limit down is reached; others allow trading to resume if the price moves away from the day's limit. If there is a major event affecting the market's sentiment toward a particular commodity, it may take several trading days before the contract price fully reflects this change. On each trading day, the trading limit will be reached before the market's equilibrium contract price is met.


Investment dictionary. . 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • limit down — noun Condition in which the market price of a commodity has fallen by the maximum daily amount permitted by the exchange. Orange Juice May July fell to 5.00 cent limit DOWN ahead of Cold Storage report on 1/21. mdash; Moore Research Center Inc… …   Wiktionary

  • Limit Up/Limit Down —    The maximum advance or decline from a previous day s settlement price that is allowed in one trading session. Some markets do not trade again during the session after a limit up/down move unless prices retreat from that limit. Other markets… …   Financial and business terms

  • limit down — The maximum price decline from the previous trading day s settlement price permitted in one trading session. Exchange Handbook Glossary …   Financial and business terms

  • limit up, limit down — The maximum price change allowed for a commodity futures contract per trading day. Bloomberg Financial Dictionary …   Financial and business terms

  • limit — / lɪmɪt/ noun the point at which something ends or the point where you can go no further ♦ he has exceeded his credit limit he has borrowed more money than he is allowed ♦ limit ‘up’, limit ‘down’ upper or lower limits to share price movements… …   Dictionary of banking and finance

  • limit up — noun Condition where the price of the commodity has risen by the maximum daily amount permitted by the exchange. See Also: limit down …   Wiktionary

  • Down South Hustlers: Bouncin' and Swingin' — Compilation album by Various artists Released October 31, 1995 Recorded 1 …   Wikipedia

  • Limit state design — (LSD) refers to a design methodology used in structural engineering. The methodology is in fact a modernization and rationalization of engineering knowledge which was well established prior to the adoption of LSD. Beyond the concept of a limit… …   Wikipedia

  • Down to Earth (magazine) — Down To Earth Logo of magazine Editor Sunita Narain Categories Environment, Science, Nature Frequency Fortnightly …   Wikipedia

  • Down in Flames (Blackhawk song) — Down in Flames Single by BlackHawk from the album BlackHawk R …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”