Asia's oldest bourse BSE will introduce two new facilities from Monday, in equity, equity derivative and currency derivative segments, a move that help investors limit losses without capping profit potential.
These new orders are -- One Cancels the Other (OCO) and Book Or Cancel (BOC).
Under OCO order, an investor can place two orders of the same quantity for the same contract at different price levels. When the available market prices trigger one order, that order will be executed while the remaining order will be automatically deleted.
BOC is a limit order whereby, it ensures that the incoming order is written to the order book as a passive order. At the same time, if the incoming BOC order is likely to get matched with an opposite side passive order, then this BOC order would get cancelled.
The exchange plans to introduce these order types from Monday, June 27, 2016, BSE said in a circular.
Besides, a mock session would be conducted tomorrow in this regard.
"The exchange proposes to introduce OCO and BOC order types. These order types shall be available in equity, equity derivative and currency derivative segment with effect from Monday, June 27, 2016," BSE said.
The new facilities will help investors limit losses without capping profit potential.
