What is a price corridor?
With the offering of automatic matching and partial filling, the need to offer widely varied pricing is no longer necessary. The price corridor offers a guide based on a “moving” volume weighted average market price to help protect investors from mispriced or mistaken orders.
During the Market Discovery Period, a 24 hour window after the trading opens, the price corridor is set at 90% giving our verified investors the opportunity to find the market price based on the current company position or latest news.
During the regular trading period, the price corridor is 20% up and 20% down from the past 5 trades volume weighted average price (VWAP) of the instrument, hence 40% spread between the possible lowest and highest buying/selling price.
In the event of key company announcements that may impact trading prices, all orders will be cleared and as a result, the price corridor will be reset. To avoid an orderbook of outdated or unfeasible orders, the expiry date for orders is also capped at 30 days.