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Position limits |
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Position limitsApplies to derivative products. Maximum position available in any one future or option contract for a given institution. For "bona fide" futures hedgers, there are no position limits.Position limits Similar MatchesLong positionLong positionThe purchase of a security, commodity or financial instrument (e.g. shares) in the belief that the price will increase. The purchaser hopes to sell the shares at a higher price than he bought at and thus make a profit. Position limitPosition limitThe maximum position, either net long or net short, in a futures market or options market that may be held or controlled by one person as prescribed by an exchange or by the CFTC. Such limits can be set for individual expiration months, such as the spot month, and for all listed expiration months combined. Since hedgers are often exempt from such limits, position limits are often termed 'speculative limits'. Discretionary PropositionDiscretionary PropositionA proposal on a proxy card that brokers can cast in favor of management if they have not yet heard from the beneficial holder ten days before the annual meeting. See: Ten-Day Rule Modigliani and Miller Proposition IModigliani and Miller Proposition IA proposition by Modigliani and Miller which states that a firm cannot change the total value of its outstanding securities by changing its capital structure proportions. Also called the irrelevance proposition. Net foreign asset positionNet foreign asset positionThe value of the assets that a country owns abroad, minus the value of the domestic assets owned by foreigners. Equals balance of indebtedness. Further SuggestionsPosition tradersynthetic position Heckscher-Ohlin Core Propositions Position building Take a position Covered position Disposition of Real Estate Statement Covered position Positioning Open position Equilibrium position Net position Welfare proposition Position Core propositions Miller and Modiglianis irrelevance proposition Interpositioning Spread position Synthetic forward position Foreign asset position Open position Position sheet Long position in an option Short position Long position |
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