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    Investment: Do exchange-imposed price limits protect futures traders from losses?

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    Do exchange-imposed price limits protect futures traders from losses that would result in the absence of such limits? Explain.

    © BrainMass Inc. brainmass.com June 3, 2020, 7:11 pm ad1c9bdddf
    https://brainmass.com/business/futures/investment-do-exchange-imposed-price-limits-protect-futures-traders-from-losses-89131

    Solution Preview

    The evidence is inconclusive. One line of argument is that it reduces the volatility in the market and thereby avoids market crash and hence saves traders who might loose due to ...

    Solution Summary

    The cited solution of several sentences adequately addresses the question.

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