What does Lock Limit mean?
A price that has advanced or declined the permissible limit during one trading session and results into locking further trading if prices stray beyond lock limit. This is also called Limit Move.
Futures Knowledge Explains Lock Limit
The lock limit is fixed by the rules of an exchange. When lock limit takes place in any trading session, the exchange stops further trading. In some futures contracts, the limit may be unlocked and expanded or removed during a trading session a specified period of time after the contract is locked limit. The futures markets also allow the contracts to resume trading if the price moves away from the day's limit.
