Position Limit - maximum acceptable size of an open position.

For a single trader or firm, the maximum number of allowable open contracts in the same underlying commodity.

The maximum net position that may be held by a single customer in a particular contract or event. The limits are at the discretion of the exchange.

A limitation that is established by listing option exchanges. Position limits prohibit you from having a position of more than an established number of option contracts for the same security on the same side of the market.

A trader who either buys or sells contracts and hold them for an extended period of time, as distinguished from a day trader.

Limitation of the maximum size of a position in futures or options, which may be held by an individual or a group.

The maximum number of futures or options contracts any individual or group of people acting together may hold at one time.

The maximum number of option contracts on the same side of the market which can be held by any one investor or group of related investors. A long call and a short put are on the same side of the market. A long put and a short call are on the same side of the market.

The maximum number of open option contracts that an investor can hold in one account or a group of related accounts. Some exchanges express the limit in terms of option contracts on the same side of the market and others express it in terms of total long or short or short delta.

The maximum number of speculative futures contracts one can hold as determined by the Commodity Futures Trading Commission and/or the exchange where the contract is traded.

The maximum number of futures contracts permitted to be held by speculators or spreaders. The CFTC establishes some position limits, while the exchanges establish others. Hedgers are exempt from position limits.

The limitation established by the listed options exchanges that prohibits an investor from having a position of more than an established number of option contracts of the same security on the same side of the market.

The maximum number of put or call contracts on the same side of the market that can be held in any one account or group of related accounts. Short puts and long calls are on the same side of the market. Short calls and long puts are on the same side of the market.

The maximum position, either net long or net short, in a futures market, an options market or in a futures and its related options market combined, that may be held or controlled by one person as prescribed by an exchange or the CFTC. Such limits can be set for individual expiration months and for all listed expiration months combined. Because hedgers often are exempt from these limits, they often are termed "speculative limits."

The maximum position, either net long or net short, in one future or in all futures of one currency or instrument combined which may be held or controlled by one person.

limit set by an exchange which restricts the number of contracts a person or group of connected persons may hold in a particular product. Position limits are put in place to ensure that entities cannot establish a dominant and potentially destabilising position in a product (sometimes known as ‘cornering the market’). Position limits are common on many US exchanges. Currently, there are no position limits in existence on UK exchanges.

See on: Investopedia A predetermined position level set by regulatory bodies for a specific contract or option.

The maximum number of contracts, as prescribed by an exchange or the CFTC, either net long or net short, in one futures or in all futures of one commodity combined that may be held or controlled by one person or firm in its own name. Does not apply to bona fide hedgers.

See Speculative Position Limit.

An exchange established limit on positions held by one person or entity. (Also called trading limits).