Futures regulation

    What are Position Limits and how does the CFTC enforce maximum contract ownership to prevent market cornering conspiracies?

    By Easy Money Scanner · Educational reference · Not investment advice

    The short answer

    Position limits cap the maximum futures and options contracts a single trader may hold, enforced by the CFTC and exchanges to prevent market cornering or excessive speculation.

    How it works

    Limits apply to spot-month and all-months-combined positions in certain physical commodities, with exemptions for bona fide hedgers under CFTC Part 150 rules.

    An example

    A trader exceeding corn futures position limits must reduce holdings.

    Risk & limitations

    Limit levels vary by commodity and are periodically revised by CFTC.

    Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.

    Sources & further reading

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