2% Price Limit Rule

At Tradentry, protecting our traders during periods of extreme volatility is a top priority. To maintain a safe and realistic trading environment, we enforce a strict rule that prohibits trading when a product is within 2% of its CME price limit. This rule applies to both Funded Sim Accounts and Live Funded Accounts.

This safeguard helps reduce exposure to abnormal price movements that could lead to excessive risk or unrealistic fills.

What Is a CME Price Limit?

A price limit is the maximum allowable price movement for a futures contract during a trading session.
When a market reaches this limit:

  • Trading may pause temporarily

  • Limits may expand

  • Or trading may stop for the remainder of the session

These behaviors depend on the CME’s regulations and the specific product being traded.

Where Can I Check CME Price Limits?

Price limits are updated daily at 5:05 PM EST after the trading session.

You can view the official limits directly on the CME Price Limits page, where you’ll find each product’s:

  • Daily limit levels

  • Overnight limits

  • Contract specifications

Since limits vary by product and contract month, traders should always verify the most recent levels.

How to Avoid Trading Within 2% of a Price Limit

The simplest method is to monitor the % Net Change column on your platform’s quote board.
This value shows how far the current price is from the previous settlement, expressed as a percentage.

If your quote board does not display % Net Change, add it as a column.
This allows you to instantly see how close your product is to hitting a regulated limit.

Example of the Calculation (NASDAQ Market)

Assume the reference price for the NASDAQ (NQ) is 20,555.00, and the CME has set a 7% price limit for this product.

To calculate the 2% safety buffer, use the following formulas:

Upper stop-trading level

20,555 × (1 + 0.07 − 0.02)
= 20,555 × 1.05
= 21,582.75

Lower stop-trading level

20,555 × (1 − 0.07 + 0.02)
= 20,555 × 0.95
= 19,527.25

➡️ Trading Restriction

If the NASDAQ market (NQ) trades above 21,582.75 or below 19,527.25,
you must stop trading immediately as it falls within the 2% CME limit-protection zone.

Why Does Tradentry Enforce This Rule?

Trading too close to price limits exposes traders to:

  • Extreme slippage

  • Illiquid conditions

  • Sudden halts

  • Unrealistic fills in a simulated environment

To maintain fairness and protect both traders and the firm, no trading is allowed within 2% of any CME price limit. This ensures strategies remain realistic and aligned with live market behavior.

Where Can I Learn More?

For detailed product specifications and price limits, visit the CME Group website and search your specific futures product.