What is the definition of BLiSS orders?

BLiSS orders refer specifically to orders that are placed below the current market price and are adjusted downward on the ex-dividend date. This mechanism is particularly relevant in the context of dividend-paying stocks. On the ex-dividend date, the stock's price typically decreases by an amount equivalent to the dividend being paid, ensuring that the price reflects the fact that new buyers will not receive the upcoming dividend. Therefore, BLiSS orders are designed to adapt to this movement in price, providing a strategy that can help traders manage their positions around dividend payments effectively.

The adjustment of these orders is critical for ensuring that traders do not miss out on opportunities or inadvertently purchase shares at inflated prices that no longer reflect the value once the dividend has been deducted. Understanding the nature of BLiSS orders is essential for traders looking to optimize their investment strategies around dividend distributions.