Limit Move

See: Limit Order.

Like if you end up in one of those back braces with the screws that go directly into your head. Real limit move situation.

A similar concept comes up in financial markets, especially the commodities exchanges. In order to prevent the prices of commodities from moving too far too fast, many products have daily limits. These "limit moves" define how far the price can advance or decline during a single day's trading.

Say corn prices closed yesterday at $3.50 and the commodity has a limit move of $0.15. In today's trading, corn could rise as high as $3.65 or fall as low as $3.35. If it hits $3.65, corn is said to go "limit up." If it were to fall to $3.35, traders would say it went "limit down."

See: Limit Up. See: Limit Down.