Friday, July 21, 2017

What is price freeze in stock market and the error order is cancelled due to price freeze

Selling and Buying Quantity freeze limit

                      Quantity Freeze Limits
The “Selling Freeze” and “Buying Freeze” are terminologies used in NSE and BSE. These terminologies comes in use often during the stock market. Here is a definition of buying freeze and selling freeze of any stock in NSE or BSE.
Buying Freeze – Many times you want to buy a stock from NSE or BSE, but there is no seller of that stock. This situation called “Buying Freeze” for that seller. In the situation of buying freeze you can sale your stock at the highest price offered by buyer. But if you want buy the buying freeze stock then you have to give order for purchase that stock at as the same as highest rate offered by another buyer. You can not write less price to than highest price in to order entry book.
“Buying Freeze” is different from “Upper Circuit”. In the “Upper Circuit” the limit of price keeps importance. But in “Buying Freeze” the seller keeps importance.
Selling Freeze This situation is just opposite of buying freeze. In the situation of “Selling Freeze” you can not sell your stock soon because there is no any buyer available for purchase that stock. But in this situation you can buy that stock at the lowest price offered by seller of that stock
If you want sell your stock anyhow then you have to give order for sell at as same as lowest price which is lowest price offered by earlier. You can not give order for sale your stock less than that lower price. Your sale oreder will be executed when any buyer will come.
This situation is different for “Lower Circuit”. In the situation of lower circuit the limit of price matters but inn the situation of “Selling Freeze” buyers matters.
Quantity Freeze Limits
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