Help CenterAvoiding Trades Within 2% of a Price Limit
What Are Price Limits?
A price limit refers to the maximum allowed fluctuation in a futures contract’s price during a trading session. These limits are set by the exchange (e.g. CME) to prevent excessive volatility. Once a contract nears its price limit, certain trading behaviour or halts may be triggered depending on the product.
How to Find the Current Price Limits for Your Contracts
To stay compliant with this rule, you’ll need to know the price limits that apply to the contracts you trade. Here’s how:
-
Check the latest exchange documentation — Price limits vary by contract, expiration month, and time of day. Overnight limits may differ from those during regular trading hours.
-
Use the previous day's settlement price as a benchmark when limits are calculated relative to that value.
-
Visit the exchange’s official site (for example, CME's website) where they publish the current price-limit levels. These are updated after each session - https://www.cmegroup.com/trading/price-limits.html
Requirement: Staying 2% Away From Price Limits
You must not open new trades when a contract is within 2% of its price limit — this helps protect both the firm and traders from heightened risk around extreme price moves. This rule is applicable on ALL accounts & will result in a Hard Breach - What Happens if I violate a rule
Why we Enforce This Rule
-
To limit risk exposure during periods of extreme volatility.
-
To ensure trading remains fair and orderly.
-
To protect both the firm’s capital and trader performance from large, uncontrollable moves.
-
To ensure traders understand the specs of the contracts they trade (settlement prices, limits, etc.).