An Exchange Has the Right to Impose a Limit on the Daily

question 43

Essay

An exchange has the right to impose a limit on the daily price movement of a futures contract from the previous day's closing price.Explain why such a right might be needed.

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Definitions:

Conservatism

A political and social philosophy promoting traditional institutions and practices, emphasizing stability, continuity, and respect for cultural heritage.

Pretend Play

A form of play in which children use their imagination to create scenarios, often involving role-playing or make-believe.

Conservation

The principle in cognitive development that recognizes the ability to understand that redistributing material does not affect its mass, number, or volume.

Egocentrism

A cognitive bias where an individual is unable to differentiate between their own perspective and that of others.