Trading institutions' stop-loss orders involve the purchase or sale of a fixed amount of currency when and if the exchange rate for that currency reaches a specified level. These orders may be intended for execution during the day, overnight, or until finalized or canceled. Fluctuations in market liquidity, multiple price-discovery mechanisms, and evolving channels of distribution often obscure transparency and may complicate the execution of such business. To avoid disputes, institutions and their counterparties should share a clear understanding of the basis on which these orders will be undertaken. In particular, the price mechanism that will trigger the execution of any transaction should be clear. An institution that engages in stop-loss transactions assumes an obligation to make every reasonable effort to execute the order quickly at the established price. Management should also make certain that their dealers and operations departments are equipped to attend to all aspects of the frequently complex nature of these orders during periods of peak volume and extreme volatility.;);)
تبصرہ
Расширенный режим Обычный режим