Definition of position limit

The maximum size of a long or short position in a particular security, or in derivatives based on that security, that can be held by an individual investor or a group of investors (or dealers).


position limit in the news

In June 2014 almost five years after its first hearings on the issue the US Commoditiy and Futures Trading Commission (CFTC) reopened public comment on position limits, or caps on the number of commodity trading contracts speculators can control.

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