Position Limit
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.
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