Price limit

The maximum price rise or decline permitted by an exchange in its commodities. The limit varies from commodity to commodity and may change depending on price volatility (variable price limits). Not all exchanges have limits; those that do set their limits relative to the prior day's settlement, for example, the CBOT may set its limit at 10› for corn. On day 2, corn may trade up or down 10› from the previous day's close of $3.00 per bushel; i.e., up to $3.10 or down to $2.90 per bushel.