Trading

Position Limit

By Ryan Silk & Lawrence Polatchek · Reviewed April 2026 · Options Trading Glossary

Maximum option contracts allowed per underlying

What is Position Limit?

Position Limit The maximum number of option contracts a trader or group of related traders can hold on the same side of the market (net long or net short) for a single underlying. Position limits are set by exchanges and regulators to prevent market manipulation. Limits vary by underlying, typically ranging from 25,000 to 250,000 contracts for equity options.

Complete Definition

The maximum number of option contracts a trader or group of related traders can hold on the same side of the market (net long or net short) for a single underlying. Position limits are set by exchanges and regulators to prevent market manipulation. Limits vary by underlying, typically ranging from 25,000 to 250,000 contracts for equity options.

Related Terms

Open Interest Contract Options Clearing Corporation

Written by

ApexVol Research Team

Quantitative options research

All calculations use live ORATS institutional data — the same source used by professional volatility desks.

Technical reviewer

Ryan Silk, ApexVol Founder

Reviewed for technical accuracy

10+ years trading options. Built ApexVol's pricing engine, Greeks model, and IV-rank methodology.

This guide is updated as market conditions and ORATS data change. Last revised 2026-05-12. How we research →

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