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Options and Futures

Price Limit

In the world of finance, we often come across terms such as "maximum advance" or "decline" in relation to trading contracts. These terms refer to the limit set by the exchange for a contract's movement in a single trading session, based on the previous day's settlement. This limit is known as the Variable Limit and it plays a crucial role in ensuring stability and fairness in the market. So, as investors, it is important for us to understand and keep track of these limits when making trading decisions.
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