- ICICI Direct will integrate Indicative Equilibrium Price (IEP) on its trading platform
- IEP offers traders insights into market movements before the closing bell
- IEP will be shown on charts and indices like NSE Nifty 50 and BSE Sensex
ICIC Direct, ICICI Bank's retail trading and investment platform, will be integrating an extensive display of the 'Indicative Equilibrium Price' (IEP) according to a press release from the company on Wednesday.
The IEP is intended by the platform to provide traders and investors with more clarity regarding market movement patterns before the closing bell. It will be thoroughly incorporated into the platform's charts and displays, which includes underlyings and indices like the NSE Nifty 50 and BSE Sensex.
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"By tracking the IEP, investors can gain deeper insights into demand and supply dynamics, identify potential shifts in price direction before the final close on their portfolios and derivatives positions, and make more informed trading and investment decisions," the release said.
This development comes after the Securities And Exchange Board of India (SEBI) announced the inclusion of the Closing Auction Session (CAS) with regards to stocks with F&O (futures and options) contracts to take the place of the initial VWAP (volume weighted average price)-based closing price methodology.
It is a transparent system, driven by auctions that puts together all the 'buy' and ''sell interest into a single pool of liquidity from 3.15 pm. onwards.
The IEP provides visibility into the likely settlement price of the underlying security, which may help those ICICI Direct users who are active in the derivatives segment.
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This is will likely improve their ability to assess risks, supervise their positions and better comprehend price movements that could shape futures and options contracts.
“Clear visibility of the Indicative Equilibrium Price is essential for informed decision-making. By displaying it comprehensively — in the watchlist, on charts and with Nifty spot — we are giving our clients the transparency they need to understand price formation and participate with greater confidence in the Closing Auction Session. This will help enhance market transparency and empower every investor on our platform," Ajay Saraf, ICICI Securities' executive director said.
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