Position restriction system

Position restriction system

The position limit system is a system for futures exchanges to prevent excessive concentration of market risks on a few traders, prevent market manipulation and limit the number of positions held by members and customers. Specifies the maximum amount of contract positions that members or customers can hold, which is calculated unilaterally, and too many positions are not allowed. "The main purpose is to avoid excessive price fluctuations driven by funds and take a protective measure. The position limit system is a system for futures exchanges to prevent excessive concentration of market risks on a few traders, prevent market manipulation and limit the number of positions held by members and customers. In this respect, the stock option price limit system is conducive to the smooth operation of the market.