Were the limits just hit?

[james_gsx 16]

I have no idea where to put this thread?

 

But I have a flat green line on my chart, what does this mean? Were the limits already put on?

 

[mister ed 10]

Yes, I think so James

[mister ed 10]

Overnight hours in ES, limit is 70 points up (yeah right) or down.

 

Just reading this from CME website as I type...

 

http://www.cme.com/trading/prd/equity/pricelimits.html

http://www.cme.com/trading/files/EquityIndexPriceLimitGuide.pdf

http://www.cme.com/trading/files/PriceLimitFAQ.pdf

[mister ed 10]

Overnight limit is 5% - RTH first limit is 10%

 

The % is calculated at the start of each quarter, hence a hard point limit of 70 points (overnight mkt)

which is slightly more than 5% at current prices ...

 

The limits during RTH, in case we need them today :-) are

140 points (the 10% limit)

280 points (20%)

420 points (30%)

Edited January 22, 2008 by mister ed

[mister ed 10]

OK - back higher - there was actually a lot of volume went through at that limit price. It is overnight so volumes are not huge but this was relatively large - looks to be about 16,000 contracts (give or take) went through at the limit.

[torero 10]

I've never seen that before. I remember watching the ES and ER2 in july 2004 or 2005 when the London metro was attacked and the overnight didn't stop trading. Not sure about this one.

[brownsfan019 17]

Put that in your trading scrapbook James b/c not sure how often you will see that.

 

Gotta love the free market that will stop a down move. Not sure we'll see an up move ever stopped.... wonder why...

 

That's why shorting can get a bad rap in the regular media - they see this happen and then there's stories of shorts getting stuck and plowed over by the longs. It's just part of the game and something you rarely see.

[torero 10]

I see this happen very often in commodities, but index futures, first time and learning.

[mister ed 10]

Those links to the CME info on index futures limits are pretty useful, quite good information in there and, unusually from the CME, easily understandable.

 

The overnight limits are 5% down OR UP. This is compared to the limits that apply during RTH, these are only applicable on the downside - no upside limits during RTH.