Definition of position limit

Commodities trading: number of contracts that can be acquired in a specific commodity before a speculator is classified as a "large trader." Large traders are subject to special oversight by the Commodity Futures Trading Commission (CFTC) and the exchanges and are limited as to the number of contracts they can add to their positions. The position limit varies with the type of commodity.
Options trading: maximum number of exchange-listed option contracts that can be owned or controlled by an individual holder, or by a group of holders acting jointly, in the same underlying security. The current limit is 2,000 contracts on the same side of the market (for example, long calls and short puts are one side of the market); the limit applies to all expiration dates.