Trading range
Trading range
trading range
Trading range.
A trading range means different things on different types of markets.
On a stock exchange or over-the-counter market, it's the spread between the highest and lowest prices at which a particular stock or market as a whole has been trading over a period of time.
Some of the commodities exchanges set a trading range for each commodity because of the minimum margin required to maintain a position. If the market price moves above or below the trading range, trading is halted to give the member firms the opportunity to issue margin calls and collect the required money from customers whose account values are below the margin requirements.