A CME price limit is the maximum price range a futures contract can move within a trading day. When the limit is hit, the exchange may halt trading, expand the limit, or stop trading for the rest of the trading day, depending on the product. FTMO adds a 2% safety buffer before this limit, restricting traders from opening new positions on the affected instrument.
For example, for most equity index futures, the first CME limit is 7%, measured from the previous day’s settlement price. In this case, once the price moves more than 5% from the previous day’s settlement price, traders are not allowed to open new positions on the affected symbol.
The trader is solely responsible for monitoring the current price limits, which CME publishes and updates after each trading day on its official Price Limits page. If the rule is violated, FTMO has the right to terminate the trading account.
