New Trading Metrics – BRPC and BRPV

Informative

Greater protection with bid-ask spreads on the LiNe trading platform

The LiNe Trading platform's pre-trade risk system will now include two new metrics: Buy Order Price is Outside Bands (BRPC) and Sell Order Price is Outside Bands (BRPV). The goal is to prevent orders with prices outside the market reality from being accepted and executed.

The new price bands will function as bid-ask spreads, automatically limiting the price of orders entered in the market within a tolerance range previously defined by the account holder.

This initiative reduces risks caused by operational errors, system failures or inadequate strategy setups. In practice, the price tolerance percentages will be applied to the asset's Last Trade Price or the Adjusted Closing Price when there are no recent trades.

Therefore, whenever an order is posted, the system will check if the price is within the allowed band. If it is outside the configured range, the order will be automatically rejected before even entering the B3 order book.

Project Tags:

Trading

Listed

In Progress

Listed

Product benefits

Greater safety

Prevents the risk of entering orders with prices incompatible with the market.

Less operational risk

Fewer impacts caused by human error, system failures or poorly configured strategies.

Harmonization

The bid-ask spreads define an acceptable price range for each order, based on the most recent asset price.

Control

Possibility to set up price tolerance margins for buy and sell orders.

Learn more

New metrics help avoid orders with prices outside the market reality.

For buy orders, the upper limit will be assessed, while for sell orders, the lower limit will be assessed. Learn how it´s done:

BRPC= Pricei ×(1+Pctc)𝑩𝑹𝑷𝑪= 𝑷rice𝒊 ×𝟏+𝑷𝒄𝒕𝒄

Where:

Pricei: price of the last trade for instrument i, or adjusted closing price when there is no trade;
Pctc: percentage limit for prices outside bands for buy orders as defined by the participant;
Pctv: percentage limit for prices outside the bands for sell orders as defined by the participant;
Qtdoferta: quantity of contracts in the order.

LiNe is a trading tool integrated into the PUMA trading platform that allows trading participants to set pre-trade limits and monitor trades executed in markets managed by B3. Learn more.