In futures trading, a limit move occurs when:
A) the limit on the number of contracts a trader can hold at any point in time is changed
B) the price of the contract hits the specified limit
C) the limit on the price of the contract is changed
D) a limit is imposed on the number of daily transactions

Question

Quizplus · Accepted Answer

A limit move in futures trading refers to a situation where the price of a futures contract reaches a preset limit set by the exchange, preventing it from trading at a higher or lower price beyond that limit during the trading session.

In Futures Trading, a Limit Move Occurs When