Position Limit
A predetermined position level set by regulatory bodies for a specific contract or option.
Investopedia Commentary
Position limits are created for the purpose of maintaining stable and fair markets. Contracts held by one individual investor with different brokers may be combined in order to gauge accurately the level of control held by one party.
Each option and futures contract will have varying position limits.
Related Links
Options Basics Tutorial
Futures Fundamentals
Policing The Securities Market: An Overview Of The SEC
See also: CFTC, Corner A Market, Futures Contract, Large Trader, Manipulation, Option, Position, Small Trader
position limit