AquaFutures 2% Price Limit Rule: CME Compliance and Prohibited Times

Written by Paul

Published on

January 11, 2026

The 2% price limit rule at AquaFutures is a CME-mandated restriction that blocks trading during extreme market volatility. When a futures contract hits its daily price limit (moves up or down by the maximum allowed percentage), the CME halts trading temporarily—and AquaFutures enforces this on all accounts.

Quick heads-up: This article is based on my real experience with Aquafutures and the info available when I published/updated this. Things change in prop trading — rules, payouts, promos, all of it.

For the absolute latest, check Aquafutures´s website or their faq page.

This isn't an AquaFutures-specific rule. It's a CME regulation that applies to all futures traders, whether you're trading prop capital or your own money. But understanding when price limits trigger and what happens to your positions is critical—because you can't exit trades during limit-up or limit-down moves.

I'm breaking down what the 2% price limit rule actually means, which contracts it applies to, what happens if you're holding positions when limits hit, and how to avoid getting trapped in trades during prohibited times.

What Is the 2% Price Limit Rule?

The 2% price limit rule refers to the CME's circuit breaker system that halts trading when a futures contract moves beyond its daily price limit. For most equity index futures (ES, NQ, YM), the limit is approximately +/- 7-20% depending on the contract and session.

When a contract hits its limit:

Limit Up: Price has risen to the maximum allowed for the session
Limit Down: Price has fallen to the maximum allowed for the session

During a limit move, no new trades can be executed in that direction. If ES hits limit down (-7%), you can't sell any more contracts—only buy. If NQ hits limit up (+7%), you can't buy any more contracts—only sell.

The 2% in "2% price limit rule" is a misnomer—the actual limits vary by contract. ES and NQ use 7%, 13%, and 20% circuit breakers tiered through the trading day. The rule exists to prevent panic selling or buying during extreme volatility.

How CME Price Limits Work

The CME uses a three-tier circuit breaker system for equity index futures:

Level 1: 7% move from prior day's close

Trading halts for 15 minutes
Applies during regular trading hours (9:30am - 4:00pm ET)
Can trigger multiple times per day

Level 2: 13% move from prior day's close

Trading halts for 15 minutes
If triggered after 3:25pm ET, trading continues without halt

Level 3: 20% move from prior day's close

Trading halts for the remainder of the day
Only triggered once per session

These limits apply to ES, NQ, and YM during regular market hours. Overnight sessions have similar but slightly different thresholds.

For commodity futures (crude oil, gold, grains), the limits are different—often fixed dollar amounts rather than percentages. Check CME's website for specific contract limits.

When Are You Prohibited From Trading?

AquaFutures prohibits trading during two main scenarios:

1. When CME Circuit Breakers Are Active

If ES hits a 7% limit down at 10:00am, trading halts for 15 minutes. During that 15-minute window, you can't open or close positions. AquaFutures will reject any orders you try to place.

Once the halt lifts and trading resumes, you can trade normally again—unless another limit is hit.

2. During Pre-Defined "Prohibited Times"

AquaFutures may designate certain times as prohibited for trading based on:

Major economic announcements (NFP, FOMC, CPI)
Market opens/closes where volatility spikes
Low-liquidity periods where price discovery is unreliable

These prohibited times are usually communicated in advance via email or in the AquaFutures dashboard. They're rare—typically only during major news events that move markets 2-5% in seconds.

For a detailed breakdown of how major news events affect trading rules, see the evaluation rules guide.

What Happens If You're Holding Positions During a Limit Move?

If you're holding positions when a price limit triggers, you're stuck in the trade until the halt lifts or the session ends.

Example: You're long 6 ES contracts at 5200. At 10:15am, ES drops to 4836 (7% limit down from prior close of 5200). Trading halts.

During the halt:

You can't exit your position
You can't add to your position
Your P&L is frozen at the limit price
Your account equity reflects the limit price, not real-time movement

After the halt lifts (15 minutes later):

Trading resumes
ES might gap up or down from the 4836 limit
You can exit your position at the new price

If ES gaps down to 4800 when trading resumes, your 6 contracts lost an additional 36 points ($10,800 loss) beyond the limit. You couldn't exit during the halt, so you absorbed the full gap move.

This is why holding positions through high-volatility events is risky on prop accounts. You can't control when or if you'll be able to exit.

Can You Breach Your Account During a Limit Move?

Yes—and this is where the 2% price limit rule becomes dangerous.

If you're holding positions when a limit triggers and the move pushes you below your trailing drawdown threshold, you'll breach immediately—even if you couldn't exit the trade.

Example: You start the day with $50,000 (threshold: $47,500). You're long 6 ES at 5200. ES hits limit down at 4836 (-7%), which is -364 points per contract.

Your loss: 364 points × 6 contracts × $50 = -$109,200

Your account equity: $50,000 - $109,200 = -$59,200 (you're not just breached, you're blown up)

AquaFutures will terminate your account. You couldn't exit during the halt, but the breach still counts. The rule is absolute: if your equity drops below your threshold, you're done—regardless of whether you could have prevented it.

This is why most experienced prop traders close all positions before major news events or trade with extremely small size during high-volatility sessions.

Prohibited Trading Times: When AquaFutures Restricts Trading

In addition to CME-mandated halts, AquaFutures occasionally designates prohibited trading times where you're not allowed to hold positions or open new trades.

These times typically occur during:

FOMC announcements (2:00pm ET on meeting days)
NFP releases (8:30am ET first Friday of each month)
CPI reports (8:30am ET mid-month)
Major geopolitical events (wars, elections, crises)

During prohibited times:

You can't open new positions
You must close existing positions before the prohibited window starts
If you're holding positions when the window begins, AquaFutures may force-close them at market

AquaFutures usually sends advance notice (24-48 hours) when prohibited times are scheduled. Check your email and dashboard regularly.

The purpose: prevent traders from gambling on binary outcomes. FOMC and NFP can move ES 50-100 points in 30 seconds. AquaFutures doesn't want evaluations decided by coin-flip trades.

How to Avoid Getting Trapped in Limit Moves

Here's how to protect yourself from circuit breaker halts and prohibited times:

1. Close Positions Before Major News

If NFP is releasing at 8:30am Friday, close all positions by 8:20am Thursday. Don't try to "trade through it" on a prop account. The risk of breaching isn't worth it.

2. Trade Smaller Size During High-Volatility Sessions

If you normally trade 6 contracts, drop to 2-3 contracts on days with FOMC, CPI, or geopolitical uncertainty. This limits your exposure if a limit move traps you in a trade.

3. Use Tight Stops During Market Opens

The first 30 minutes (9:30am-10:00am ET) and last 30 minutes (3:30pm-4:00pm ET) have the highest volatility. Use tighter stops during these windows to avoid getting caught in a sudden move.

4. Monitor CME Price Limits

Know where the circuit breakers are set each day. If ES closed yesterday at 5200, the first limit down is 4836 (7%). If ES is trading at 4850, you're 14 points away from a halt—don't hold large positions.

5. Check AquaFutures Emails for Prohibited Times

AquaFutures announces prohibited times in advance. If you miss the email and you're holding positions during a prohibited window, they may force-close your trades at market—potentially at a bad price.

Does the 2% Rule Apply to Funded Accounts?

Yes. The 2% price limit rule is a CME regulation, not an AquaFutures policy. It applies to all futures traders regardless of account type—evaluations, funded accounts, personal accounts.

On funded accounts, the risk is even higher because you're trading real capital. If you breach your funded account during a limit move, you lose the account and all its profits.

The same prohibited times also apply to funded accounts. If AquaFutures designates 8:30am Friday as prohibited, you can't hold positions during NFP on your funded account either.

For a full breakdown of how funded account rules work, see the funded account rules guide.

What About Overnight Positions?

Overnight positions are allowed at AquaFutures, but they're subject to the same price limit rules. If ES hits a limit during the overnight session (6:00pm-9:30am ET), trading halts just like during regular hours.

Overnight circuit breakers are slightly different:

5% move: Trading pauses for 15 minutes
7% move: Trading pauses until regular hours open

If you're holding positions overnight and a 7% move triggers at 3:00am, you won't be able to exit until 9:30am when regular trading resumes. That's 6.5 hours of exposure you can't control.

This is why most prop traders avoid holding overnight positions on evaluation accounts. The overnight risk isn't worth it when you're trying to pass an eval.

For strategies on managing overnight exposure, see the risk management guide.

How Often Do Price Limits Actually Trigger?

Price limits are rare but not unheard of:

2020 COVID crash: ES hit multiple limit downs in March 2020 (circuit breakers triggered daily for a week)
2016 Brexit: ES and NQ hit circuit breakers overnight
2010 Flash Crash: Brief halt during intraday meltdown

In normal market conditions, you might see 1-2 circuit breaker halts per year. But during crisis periods (2008, 2020), they can trigger multiple times per week.

The problem: you don't know when the next crisis will hit. It could be tomorrow. And if you're holding 6 contracts long when ES gaps down 7% overnight, your account is gone.

The smart play: trade small, close positions before major news, and never hold overnight on an evaluation account unless you're willing to lose the account.

Can You Trade During the Halt or Prohibited Time?

No. During a CME circuit breaker halt or AquaFutures-designated prohibited time, all trading is blocked.

You can't:

Open new positions
Close existing positions
Place pending orders
Modify stops or limits

If you try to place an order during a halt, AquaFutures will reject it. You'll see an error message like "Trading is currently prohibited" or "Market is in halt status."

Once the halt lifts or the prohibited time ends, trading resumes normally and you can trade again.

Does This Rule Apply to All Futures Contracts?

The 2% price limit rule (CME circuit breakers) applies to equity index futures (ES, NQ, YM, RTY) during regular trading hours.

Other futures contracts have different limit rules:

Crude Oil (CL): +/- $10 per barrel limit (approximately 15% at current prices)

Gold (GC): +/- $100 per ounce limit (approximately 5% at current prices)

Corn, Soybeans, Wheat: Fixed cent limits per bushel

Each contract has its own price limit structure set by the CME. Check the CME website for specific contract limits before trading unfamiliar markets.

Final Thoughts: Don't Trade Through Major News on Prop Accounts

The 2% price limit rule exists to protect markets from panic moves—but it doesn't protect your prop account. If you're holding positions when a circuit breaker triggers and the move pushes you below your drawdown threshold, you're breached. No exceptions.

The smart play: close all positions before major news events (NFP, FOMC, CPI), trade smaller size during high-volatility sessions, and never hold overnight positions on evaluation accounts.

You're not trading your own money—you're trading capital you haven't earned yet. One bad limit move can wipe out weeks of consistent profits. It's not worth it.

If you want to trade through major news, do it on your personal account—not on an AquaFutures eval where one gap move ends everything.

Frequently Asked Questions

What is the 2% price limit rule at AquaFutures?

The "2% price limit rule" refers to the CME's circuit breaker system that halts trading when equity index futures (ES, NQ, YM) move beyond their daily price limits—typically 7%, 13%, or 20% from the prior day's close. During a halt, you can't open or close positions. AquaFutures enforces this CME regulation on all accounts.

Can I breach my account during a circuit breaker halt?

Yes. If you're holding positions when a limit triggers and the move pushes you below your drawdown threshold, you'll breach immediately—even if you couldn't exit the trade. The rule is absolute: if your equity drops below your threshold, you're done.

How long do circuit breaker halts last?

Level 1 (7% move): 15-minute halt. Level 2 (13% move): 15-minute halt unless after 3:25pm ET. Level 3 (20% move): Trading halts for the remainder of the day. After the halt lifts, trading resumes normally.

What are prohibited trading times?

Prohibited times are specific windows (usually around major news events like FOMC or NFP) when AquaFutures blocks all trading. You can't open new positions or hold existing positions during these times. AquaFutures announces prohibited times in advance via email.

Can I hold positions overnight on an AquaFutures account?

Yes, overnight positions are allowed—but they're subject to the same price limit rules. If ES hits a 7% circuit breaker at 3:00am, you won't be able to exit until 9:30am when regular trading resumes. Most prop traders avoid overnight positions on evaluation accounts because of this risk.

Does the 2% rule apply to funded accounts?

Yes. The price limit rule is a CME regulation that applies to all futures traders—evaluations, funded accounts, and personal accounts. Circuit breakers and prohibited times apply equally to funded accounts.

How often do circuit breakers actually trigger?

In normal markets, 1-2 times per year. During crisis periods (2008, 2020), they can trigger multiple times per week or even daily. You can't predict when the next crisis will hit, which is why trading through major news on prop accounts is risky.

What happens if I'm holding positions during a prohibited time?

AquaFutures may force-close your positions at market price when the prohibited time begins. They usually announce prohibited times 24-48 hours in advance, so you have time to close positions manually before the window starts.