Freak trades

There was a freak high in TCS Aug.

  1. Why does that happen. Its not just in stocks, there was one in NIFTY JULY on 26 june(expiry)?

  2. Market orders can go awry here. Is there anything that we can do or its just the way stock markets are.

This is not something which you can control, typically these trades happen either when liquidity is less ( the pending orders) or if a big buy/sell order is placed which moves market for a few seconds.

As they say, there are things which you can control and things which you cannot. This is one of those which we cannot, and hence no point worrying about it.

If you are trading stocks, make sure to check the liquidity if you are trading biggish volumes.


But even in NIFTY??
Ignore the comment if it can happen even in NIFTY

On Nifty this happens very occasionally, but I guess the emkay global incident, there was one incident where Infy was down 10% and hence Nifty also moved down. Nothing is sacrosanct

TCS is highly liquid stock, then why does this happen in TCS?
I think we cannot blame liquidity, it happens as and when it happens, no choice, So we should’nt worry about such freak values. It happens once in a blue moon, I suppose.