Limit Up

What is Limit Up?

Author: Andy Yan
Andy Yan
Andy Yan
Investment Banking | Corporate Development

Before deciding to pursue his MBA, Andy previously spent two years at Credit Suisse in Investment Banking, primarily working on M&A and IPO transactions. Prior to joining Credit Suisse, Andy was a Business Analyst Intern for Capital One and worked as an associate for Cambridge Realty Capital Companies.

Andy graduated from University of Chicago with a Bachelor of Arts in Economics and Statistics and is currently an MBA candidate at The University of Chicago Booth School of Business with a concentration in Analytical Finance.

Reviewed By: Josh Pupkin
Josh Pupkin
Josh Pupkin
Private Equity | Investment Banking

Josh has extensive experience private equity, business development, and investment banking. Josh started his career working as an investment banking analyst for Barclays before transitioning to a private equity role Neuberger Berman. Currently, Josh is an Associate in the Strategic Finance Group of Accordion Partners, a management consulting firm which advises on, executes, and implements value creation initiatives and 100 day plans for Private Equity-backed companies and their financial sponsors.

Josh graduated Magna Cum Laude from the University of Maryland, College Park with a Bachelor of Science in Finance and is currently an MBA candidate at Duke University Fuqua School of Business with a concentration in Corporate Strategy.

Last Updated:May 5, 2022

Limit Up is a term used in commodities trading to refer to the maximum amount by which the price of a commodity is allowed to increase in one trading day. If the limit is hit, then the market will either close totally for the day or will not be open for trading until the price drops below that limit price.

If there is a major event affecting the price of a commodity (i.e. terrorist attack on oil pipeline, collapse in large iron mine etc.) then the effects of a Limit Up may mean it takes several trading days for the price of the commodity to reach its new norm due to it being more than a single ‘Limit Up’ price increase.

 

Free Resources

To continue learning and advancing your career, check out these additional helpful WSO resources: