What is ‘Variable Price Limit’
A schedule of price variations above or below the accepted limits determined by the commodities exchanges for any one trading day.
Explaining ‘Variable Price Limit’
Variable price limits allow contracts to trade past their maximum daily changes. Exchanges determine whether a futures contract be assigned a variable price limit as it is generally used for commodities with high transaction volumes.
Further Reading
- A class of distortion operators for pricing financial and insurance risks – www.jstor.org [PDF]
- The magnet effect of price limits: A logit approach – www.sciencedirect.com [PDF]
- A modified economic-statistical design of the T – www.tandfonline.com [PDF]
- Variable rare disasters: An exactly solved framework for ten puzzles in macro-finance – academic.oup.com [PDF]
- Price limits and stock market volatility in Taiwan – www.sciencedirect.com [PDF]
- Are price limits really bad for equity markets? – www.sciencedirect.com [PDF]
- Financial fragility, liquidity, and asset prices – academic.oup.com [PDF]
- Econometric models of limit-order executions – www.sciencedirect.com [PDF]
- The application of continuous-time random walks in finance and economics – www.sciencedirect.com [PDF]
- Dynamic limit pricing and internal finance – www.sciencedirect.com [PDF]
