The term ‘open interest limit’ denotes the highest number of open contracts or positions that market participants are allowed to maintain for a specific financial instrument.

A restriction applies on a per-client basis, limiting them to 5% of the total number of all derivative contracts for the same underlying asset, while trading members (brokers) are subject to a 15% limit on open interest.

Serving as a regulatory safeguard, it prevents the accumulation of excessive positions by a single person or a trading member, thereby preserving market stability and mitigating potential risks.