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Position limits

Hard caps on how many contracts one trader or related group may hold in a product, set by exchanges and the CFTC.

Limits exist so that no single participant can corner a physically deliverable market. They are tightest in the spot-month and looser across all months combined, and they aggregate accounts under common control, so splitting across brokers does not help.

Genuine hedgers can apply for a hedge-exemption. Speculators cannot, and breaching a limit brings fines and forced reduction regardless of intent.

Example: a federal spot-month limit on a core agricultural contract might be a few hundred contracts against tens of thousands allowed in all months, which for corn means a cap measured in millions of bushels.

Related: accountability-level, hedge-exemption, spot-month, large-trader-reporting, cftc

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