Why limits exist

Published 2024-11-18 ยท Updated 2024-11-18

Limits are a core risk control. They protect operators from concentrated exposure and signal how much confidence exists in a given price.

Limits can vary by market, timing, and customer profile. That variation reflects liquidity, volatility, and the cost of being wrong.

This note explains the practical reasons for limits and how they shape the way odds are priced and adjusted.