Variable Price Limit

Variable Price Limit - Sometimes a situation asks for securities to be traded above or below a certain price limit. Commodities and options are two examples of securities; they usually have a price limit that is regular. The price range is usually to be found between the lowest and the highest price permitted for these commodities. When securities are traded above or below that limit, we speak of a variable price limit. The variable price limit is often used when trading popular commodities. Even foreign currency can be traded from time to time with a variable price limit, often followed by responses of world banks on this situation.