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 2026-09-08
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.
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…