Business and Personal Finance Dictionary

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• DAILY TRADING LIMIT
  
  The daily trading limit is the most that the price of a futures or options contract can rise or fall in a single session before trading in that contract is stopped for the day. Trading limits are designed to protect investors from wild price fluctuations and the potential for major losses. They're comparable to the circuit breakers established by stock exchanges to suspend trading when prices fall by a specific percentage.
  
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