Price Banding

What is Price Banding?

Price Banding meaning A CME Group and ICE-instituted mechanism to ensure a fair and orderly market on an electronic trading platform. This mechanism subjects all incoming orders to price verification and rejects all orders with clearly erroneous prices. Price bands are monitored throughout the day and adjusted if necessary.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary