The National Stock Exchange (NSE) has cautioned stock brokers against executing orders which appear to be non-genuine, leading to deviation in the normal price discovery process.
- These instructions came after the National Stock Exchange’s (NSE) derivatives segment witnessed a ‘fat finger’ trade on June 2 that may have caused a loss of Rs 200-250 crore to a brokerage house.
- This could be the biggest trading mistake in the domestic market’s history.
- In market parlance, a ‘fat finger’ trade is an erroneous action resulting from pressing a wrong key.
- In other words, a fat finger trade is an erroneous action due to a mouse misclick or punching a wrong key, which could lead to a huge loss.
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