Maximum price fluctuation

Maximum price fluctuation

The greatest amount by which the contract price can change, up or down, during one trading session, as fixed by exchange rules in the contract specification. Related: Limit price.

Maximum Price Fluctuation

On an exchange, the maximum amount by which a contract or security may decline in price during a trading session. This may be a dollar amount, but is usually some percentage of its opening price. Exchanges set maximum price fluctuations in order to reduce volatility in the market and to reduce pressure for panic selling or panic buying.