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.