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NSE to introduce dynamic price band for futures contracts

Press Trust of India  |  New Delhi 

The National Stock Friday said it will introduce a dynamic price band for contracts in order to prevent erroneous order entries.

There are no fixed price band applicable for stock contracts.

"However, in order to prevent erroneous order entry, a dynamic price band for contract shall be kept at certain percentage of the base price as defined by the from time to time," the bourse said in a circular.

The dynamic price band will be relaxed by 5 per cent in case of a market trend in either direction.

In a separate circular, the bourse said there would also be operating ranges for no price band securities.

"There is no price band in respect of securities, for which are available.

"However, in order to prevent members from entering orders at non-genuine prices in such securities based on pre-trade risk control guidelines, the has set the dummy circuit (dynamic price bands) filter (operating range) at 10 per cent," it said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, February 08 2019. 22:55 IST