Skip to content
English
Go to blueocean-tech.io
  • There are no suggestions because the search field is empty.

How does the 20% risk check work on Blue Ocean ATS?

The 20% risk check prevents trades more than 20% away from a symbol’s 7:30PM ET reference price.

Blue Ocean ATS enforces a 20% risk check to prevent extreme price fluctuations.

The process works as follows:

  1. Reference Price: Based on the closest SIP print at 7:30PM ET in the post-market session (NASDAQ, NYSE Arca).

  2. Fixed Range: The 20% variance remains in effect throughout the Blue Ocean Session.

  3. Order Rejection: Any aggressive limit order priced beyond 20% of the reference price is rejected.

  4. Passive Orders: Passive limit orders are accepted.

Example

  • Reference price for symbol XYZ at 7:30PM = $10.00

  • Acceptable range = $8.00 – $12.00

  • Bids ≥ $12.01 or offers ≤ $7.99 will be rejected.

This safeguard ensures orderly overnight trading.