Advocacy
Dynamic Price Stabilization Measures in the Futures Market
In response to the implementation of the Dynamic Price Stabilization Measures, the Taiwan Futures Exchange (TAIFEX) will reject new orders for applicable products if they cause abnormal price fluctuations. For instance, a new buy order may be rejected if its potential execution price exceeds the upper limit of the real-time price range, or a new sell order may be rejected if its potential execution price falls below the lower limit of the real-time price range. Traders are advised to monitor order reports and manage their orders carefully to determine if any orders have been rejected.
This measure provides only a certain level of price stability and may adjust the rejection thresholds due to market conditions or suspend rejections in case of abnormal information. Traders should remain aware of market liquidity and their order prices when trading futures and should not rely solely on this measure.
Applicable Products:
Please refer to the TAIFEX website [Click Here]
Note:
For the combination orders of TAIEX options, each constituent contract will be evaluated for potential rejection. If any part of the combination exceeds the rejection threshold, the entire combination order will be rejected.