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Investing and Money Glossary, terms and definitions.

Lock-Limit

The lock-limit is the tool the exchanges use to protect investors in a whirlwind market. If a contract price moves up or down to the pre-established price limit, the market ""locks up"" or ""locks down"" and doesn't open up again until the price returns to an acceptable level. The idea is to prevent prices from swinging too wildly.

 

 

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