Net position and total position limit refer to the limit set for total trading position or net trading position. The total position limit limits the long position or short position of a specific trading instrument, and the net position limit limits the net amount after the long position and short position are offset. In practice, banks usually combine these two trading limits.

Risk limit refers to the limit set for the market risk measured according to a certain measurement method, such as the value-at-risk limit set for internal model measurement and the option position limit set for option position. Option position limit refers to the limit set for sensitive parameters reflecting option value, which usually includes: the limit set for measuring the Delta of option value to the change rate of benchmark asset price, the limit set for measuring the Gamma of Delta to the change rate of benchmark asset price, the limit set for Vega to measure the sensitivity of option value to the fluctuation of benchmark asset price expected by the market, the limit set for Theta to measure the change rate of option value to short-term interest rate, and the limit set for Rho to measure the change rate of option value to short-term interest rate.

Stop loss limit is the maximum allowable loss. Usually, when the accumulated loss of the position reaches or approaches the stop loss limit, it is necessary to hedge or realize the position. The typical stop-loss limit has retrospective effect, that is, the stop-loss limit applies to the accumulated losses within a period of time such as one day, one week or one month.