Position limit

A position limit caps how large a position a single participant may hold in a contract. Limits exist specifically to make corners harder, and evading them through nominee accounts is itself an offence.

instruments and markets · updated 2026-10-16

Where does position limit come up?

This term is used in the following manipulation techniques, each explained in full on its own page.

• Cornering — Cornering is acquiring control of the deliverable supply of an asset while holding a large long derivative position in it, so that short sellers cannot obtain the asset and must settle on the cornerer's terms.

Enforcement actions involving these techniques

See also

• Nominee account — A nominee account is held in one person's name for another's benefit. Nominee structures are ordinary in custody arrangements and …
• Open interest — Open interest is the number of derivative contracts outstanding and not yet closed or delivered. Open interest that is large relat…

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