Limit systems setting financial limits in trading in order to minimise financial losses. A distinction is generally made between:

• Quantity limit: Within a specific time interval, the permissible open quantity (e.g. in MT, kg, barrels, bushels, MWh, etc.) is defined by an upper and lower limit.
• Value limit/P&L limit: An upper or lower limit at which an open position must be closed.
• Static limit: The limit is set in advance and does not change depending on the size of the open position, the market price or other parameters.
• Dynamic limit: The limit is expressed as a percentage based on another risk metric.