Avoid outsized positions and high leverage to soften blow of trading outage

Losses caused by technical glitches can get magnified due to leverage, hence retail investors who do day trading need to be cautious

Topics
National Stock Exchange | Trading tips | Markets

Sanjay Kumar Singh  |  New Delhi 

The connectivity glitch that led to a prolonged stoppage of trading on the National Stock Exchange (NSE) on Wednesday left many day traders shaken. For many who have begun trading over the past one year, the situation was novel and nightmarish.

Experts say such glitches do not happen normally, but investors should not presume they can never happen. When such glitches happen, an investor can suffer losses because he does not have the option to exit his position if the market moves against him. His losses can get exacerbated if there is a large movement in the market on that day. ...

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First Published: Wed, February 24 2021. 20:18 IST
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