Decimal trading

Decimal trading

The quotation and trading of stock or bond prices in decimals, as opposed to the quotation of prices in fractions.

Decimal Trading

Trading in which the price of a security is quoted using decimals rather than fractions to represent divisions of a dollar. That is, a quote in decimal trading would be $10.25 instead of $10 1/4. Decimal trading as become more common with digitalization. See also: Drill Bits.
References in periodicals archive ?
In fact, they find an average decrease of 13 basis points, or roughly $224 million a month, in savings of institutional trading costs after moving to decimal trading.
By narrowing the spread, decimal trading could save investors money by lowering the ask price.
The NYSE has been gradually phasing in decimal trading since August.
These results suggest that decimal trading is still not broadly accepted among institutional block traders.
While some elements of the markets' operations have always been a point of contention, the advent of decimal trading has highlighted key issues and is pushing the tolerance of the institutional trading community.
While the Millennium ATS model is well positioned, the advent of decimal trading has noticeably fueled the professional community's interest in NYFIX Millennium's unique capability to allow the market exposure of large blocks of shares without causing pre-market impact.
House Commerce Committee Chairman Thomas Bliley, House Commerce Finance Subcommittee Chairman Michael Oxley, House Commerce Committee Member Vito Fossella, and House Commerce Telecommunications Ranking Member Edward Markey are scheduled to participate in a demonstration of how decimal trading will work on Island, beginning on July 3, consistent with the U.
It is estimated that, by December 2001, decimal trading will have caused peak message traffic for securities on NASDAQ to increase by 700 percent and peak message traffic for equity and index options to increase by 3,033 percent.
We expect that investors will save hundreds of millions of dollars a year as the industry moves toward decimal trading, and we are proud to be one of the catalysts for this change," said Island ECN President Matthew Andresen.
Recognizing that the June 2000 deadline for industry-wide decimal trading conversion is fast approaching, Primeon Inc.