PETALING JAYA: Investors will be able to navigate more efficiently through the equity market environment via the expansion to Bursa Malaysia’s trading features.
In a statement, the stock exchange said the five new and revised trade execution options would enable investors to execute a greater variety of trading strategies.
It said among the newly expanded trading features was the “market order at pre-closing”, which allows investors to key in market orders during pre-closing auction sessions.
The stock exchange also announced the “on-open order” feature, which enables investors to place an order that will be executed at the day’s opening price.
This is often used in relation to events that take place after the market has closed on a trading day, which is expected to affect the stock’s opening price on the following trading day.
Similarly, the new “on-close order” feature allows investors to buy or sell shares at the closing price, which will be executed at or just after closing at the end of the trading day.
Another feature is the “iceberg order”, through which investors can make conditional requests to buy or sell a large quantity of shares, but in smaller pre-determined quantities.
“This kind of order is typically used by large or institutional investors to avoid sudden movement in the market caused by large orders,” Bursa Malaysia said.
Lastly, the stock exchange introduced the “one-cancel-other” (OCO) order, which refers to a set of two orders whereby the matching of one order will result in the cancellation of the other order.
This is usually used by traders to mitigate risk and to enter the market.
Bursa Malaysia CEO Datuk Seri Tajuddin Atan said the introduction of the new and revised trade execution options is expected to empower investors towards enhancements in their trading strategies and help promote more profitable and sustainable trading.
“Looking forward, the exchange will continue to provide investors greater choice and more efficient means to implement their trading ideas that will allow them to better manage risk and capture new opportunities in the market,” he said.