A foreign currency trader who works for a bank is assigned a position limit that stipulates the amount of buying and selling that can be conducted in a given currency.

Question

Quizplus · Accepted Answer

This is true. A position limit is a restriction on the amount of a given financial instrument that can be held by a financial firm or individual trader. In the case of a foreign currency trader, the position limit would stipulate the amount of buying and selling that can be conducted in a given currency.

A Foreign Currency Trader Who Works for a Bank Is