A trading algorithm that is embedded with a stop loss/limit strategy, allowing users of electronic trading to lessen or minimize market impact associated with taking long or short positions. Unlike a single venue stop loss/limit configuration, this algorithm uses all available venues to further minimize market impact. Traders use this algorithm for liquidating or walking out of a position in a security with a minimum market impact and/or when market liquidity is low or hardly available. The SoftStop algorithm applies limit and maximum participation rate in addition to a host of parameters such as start time, end time, maximum% volume, limit, and trigger price.
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