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A change in order type expected to help limit the damage from freak trades is effective from Monday.
The National Stock Exchange (NSE) will no longer allow stop-loss orders, which traders used to exit market positions at whatever price was available in the market if their bets went wrong. It will now allow only limit orders, which restrict such execution to a predefined price.
The move is expected to help contain damage if there are freak trades that cause large price swings often because of mistakes in order entry, made worse by the freak trades triggering stop-loss orders.
The National Stock Exchange (NSE) will no longer allow stop-loss orders, which traders used to exit market positions at whatever price was available in the market if their bets went wrong. It will now allow only limit orders, which restrict such execution to a predefined price.
The move is expected to help contain damage if there are freak trades that cause large price swings often because of mistakes in order entry, made worse by the freak trades triggering stop-loss orders.
