📉 Trading Near Price Limits Policy
❗ What is a Price Limit?
Price limits are set by the exchange (like CME) and define the maximum the market can move up or down in a trading day, based on the previous day’s settlement price. These limits help control extreme volatility.
🚫 Our Rule: No Trading Within 2% of a Price Limit
To protect traders and the firm during volatile sessions, trading within 2% of the exchange’s price limit is strictly prohibited on all funded accounts. This includes Live Funded and Express Funded accounts.
If you are trading within this 2% buffer, your trade may be auto-liquidated without warning.
📘 Example:
If Nasdaq (NQ) settled yesterday at 15,000, and CME sets a:
-
Limit Up: 16,050
-
Limit Down: 13,950
Then:
-
2% of 15,000 = 300 points
-
You cannot trade when price is:
-
Above 15,750
-
Below 14,250
-
🔍 Why This Matters
When price approaches a limit, the market can lock up, preventing traders from closing or managing positions. This rule:
-
Prevents traders from being trapped in halted markets.
-
Reduces risk of major loss during extreme volatility.
📌 How to Stay Compliant
-
Always check the daily price limits here:
👉 CME Group Price Limits -
Avoid trading near session highs/lows during news events or fast-moving markets.
⚠️ Important Notes
-
Limits are different for each product and reset daily.
-
It is your responsibility to know the price limit for the product you're trading.
-
Violations may result in trade liquidation or account action.