Price Limit Policy – No Trading Within 2% of Limits

Price Limit Policy – No Trading Within 2% of Limits
Written by Support
Updated 2 weeks ago

📉 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.

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