Dictionary
Thesaurus
Encyclopedia
Translator
Web

exercise limit

 - 2 dictionary results
Financial Dictionary

Exercise Limit

A restriction on the amount of option contracts of a single class that any one person or company can exercise within a fixed time period (usually a period of five business days). This limit is in place so that no one person or company can corner or greatly impact the option market.

Investopedia Commentary

For example, copper options on the CBOE may have a five-day exercise limit of 5,000 contracts, meaning no person or group can trade more than 5,000 copper contracts over any five-day period.

Related Links

Options Basics Tutorial
Becoming Fluent in Options on Futures

See also: Chicago Board Options Exchange - CBOE, Exchange, Exercise, Option, Options Contract

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
Cite This Source
Financial Dictionary

exercise limit

The maximum number of option contracts that a holder can exercise during a specified period. This limit is established by the exchange on which the option trades.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
Cite This Source
Search another word or see exercise limit on Thesaurus | Reference
FacebookTwitterFollow us: