Limit Moves/Circuit Breakers + Futures Trading Levels for Aug. 6th

I’ve received questions about price limits or circuit breakers applied to futures contracts, so here’s some clarification:

A price limit is the maximum move permitted for a futures contract.  When markets hit their price limit, different actions can occur depending on the product being traded. Markets may temporarily halt until price limits can be expanded, they may remain in a limit condition or they may stop trading for the day, based on regulatory rules.

The CME Group applies price limits to many futures contracts across assets classes including agricultural, energy, interest rates, equity index and others.

Here are some specifics related to equity index products, including the E-mini S&P 500, the E-mini Nasdaq, the E-mini Dow Jones, the E-mini Russell 2000 and others.

→ From 5:00 P.M. to 8:30 A.M. Sundays through Fridays as well as from 3:00 P.M. – 4:00 P.M., Mondays through Fridays, only 7% up-and-down price limits are effective.

→ From 8:30 A.M. to 2:25 P.M., Central Time, Mondays through Fridays, 7%, 13%, and 20% price limits are applied to the futures price.

∙ 7% price limit trading halt: 15 mins

∙ 13% price limit trading halt: 15 mins

∙ 20% price limit trading halt: rest of day

→ From 2:25 P.M. to 3:00 P.M., only the 20% price limit will be applied to the futures price.

CME Group U.S. equity index price limits are designed to coordinate with circuit breakers provisions as applied by the New York Stock Exchange (NYSE).

The 7%, 13%, and 20% price limits are calculated during the 30 seconds of trading using a volume weighted average price (VWAP), from 2:59:30 P.M. – 3:00:00 P.M.

Note to New Traders:

The current trading environment is quite volatile and unpredictable to say the least. Most of our clearing houses have temporarily raised intraday margin requirements. Intraday price swings have been considerable. Be aware, be careful, don’t jump into stormy seas if you are not an experienced swimmer.

Many of us brokers here at Cannon have been around for many years and have seen some very wild times, such as during the COVID pandemic, the housing bubble collapse in 2006-2007 and the 9/11 terrorist attack in 2001. Some were trading during the Oct. 1987 crash. So, feel free to reach out to our experienced group. We are here to help.

Daily Levels for August 6th, 2024

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.

Explore trading methods. Register Here

* This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.