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 ?
Through new agreements with top tier liquidity providers and the introduction of key features such as one click dealing, five decimal trading and direct market execution, Liquid Markets is able to provide a strong offering with more accurate pricing not only for the retail trader but also the more professional and institutional client.
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.
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.
Some of these will include more accurate pricing through five decimal trading, vast improvements to our execution and even tighter and more competitive spreads along with numerous new features and further enhancements on the technology side down the line.
Watcher's decimal trading ability makes it the premier "chiseling" tool for direct-access traders.
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.
Securities and Exchange Commission and members of Congress have called for a move to true decimal trading, which is expected to save investors millions of dollars per day.
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.
stocks to be priced in dollars-and-cents will place the first decimal trade with Matthew Andresen, president of Island, as Island prepares to be the first marketplace to offer investors the benefits of decimal trading on Monday, July 3, 2000.
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.
Galano continued, "Earlier this year, Nasdaq announced that it was unable to commence decimal trading until next year, showing its inability to move quickly for the benefit of investors.