What is Collar Logic?

The Collar is designed to protect the investor and aims at avoiding order executions too far from the last traded price.

Why does Euronext use Collar Logic?

With Collar Logic, NYSE Euronext defines two thresholds (= the collar) between which trades can take place. The level of the thresholds adapts automatically to the last price traded. You can find information on the collar on the page with detailed price information, under "price margin".

What will happen if you place an order outside of the Collar?

Keytrade Bank has chosen to automatically execute all orders outside the Collar after showing a warning message. When you enter an order with a limit that is outside the Collar, you will receive a warning that tells you your limit is outside the Collar. Nevertheless you can confirm your order (by introducing your confirmation code) and a confirmation message will then automatically be sent to Euronext and your order will be executed outside of the Collar. When you introduce a market order, you will receive no warning and your order can be executed outside of the Collar. Orders that are in the order book for a period longer than 30 seconds and that are matched outside of the Collar will be rejected by Euronext. This can only happen due to a sudden price movement, where the match price is outside of the Collar. When an order is partially executed, the remaining part will be cancelled in case of a next match outside of the Collar.