At AquaFutures, we prohibit trading within 2% of a CME price limit. This rule protects traders from market halts and extreme price swings that can lead to major slippage or forced holds.
What Are CME Price Limits?
A price limit is the maximum a futures contract can move during a session. If hit, the market may pause or halt depending on the product and time of day.
Limits vary by instrument and session. Exact levels can be found on the CME Price Limits Page.
Key Points
Overnight moves greater than 5% or 7%, up or down, may trigger a halt
During the open market, sharp downward moves of 5% or 7% can cause a halt
Large upward moves during the day will not cause a halt
Upward halts only apply in the overnight session
Example
If NQ closes at 19500 on Tuesday:
5% of 19500 = 975
19500 - 975 = 18525
2% of 975 = 19.5
18525 + 19.5 = 18544.50
Avoid open trades at or below 18544.50, as the market is within 2% of a potential halt.
How to Stay Compliant
Check CME's Price Limits page for your contract
Calculate 2% of the limit move (based on the current threshold)
Use your platform’s quote board to monitor % net change
Avoid trades within the 2% buffer