What Is a Position Limit?

Position: A market agreement. The buyer of the futures contract is in a long (short) position, and the seller of the futures contract is in a short (short) position.

Position limit

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Position: A market agreement. The buyer of the futures contract is in a long (short) position, and the seller of the futures contract is in a short (short) position.
Position limit: that is, trading position limit. Refers to the maximum number of certain futures contracts that an exchange can hold for investors, and it manages market risks from the perspective of market share allocation.

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