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What is the reason for the rejection of the index option AMO market order?
Index option AMO market orders are rejected as they are not allowed due to the risk of high impact costs. This measure is in place to prevent orders from being executed at prices significantly different from the prevailing market price, due to the liquidity concern.
To avoid high impact costs and the risk of unexpected losses which may result in a debit balance in the trading account, clients are advised to place limit orders instead of AMO market orders.
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