imbalance of orders

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Imbalance of orders

Used for listed equity securities. Too many market orders of one kind - to buy or to sell or limit orders to buy up or sell down, without matching orders of the opposite kind. An imbalance usually follows a dramatic event such as a takeover, research recommendation, or death of a key executive, or a government ruling that will significantly affect the company's business. If it occurs before the stock exchange opens, trading in the stock is delayed. If it occurs during the trading day, the specialist halts and then suspends trading (with floor governor's approval) until enough matching orders can be found to make an orderly market.

Imbalance of Orders

The excess of buy orders or sell orders for a given security. That is, an imbalance of orders occurs when more brokers or investors have made more orders of one type such that they cannot be matched to orders of the opposite type. Order imbalance in either direction reduces the liquidity of a security and thus specialists and market makers attempt to keep imbalance at the lowest possible level. Extreme order imbalance may result in the temporary suspension of trade.

imbalance of orders

References in periodicals archive ?
58%, my regression results reveal that their aftermarket prices on the first trading day are primarily driven by the purchases and order imbalances of institutional investors.
Amex's new market structure will offer market participants a greatly expanded range of automated transaction services for equities and exchange traded funds and will combine the speed of an electronic market with the dedicated liquidity of an auction market for times of order imbalances, complex trades, or when natural liquidity cannot be found.
They calculate net order imbalances for more than 66,000 individual investors with accounts at a large discount brokerage, 647,000 individual investors with accounts at a large retail brokerage, 14,000 individual investor accounts at a small discount brokerage, and 43 professional money managers.
Over the near term, our repurchase plan will help to ensure liquidity and alleviate the affects of any order imbalances resulting from the events of the past week.
As discussed in greater detail previously, we expect the specialist to take advantage of order imbalances to open his or her assigned stocks in the direction of the imbalance so as either to buy into or sell out of inventory at an opening price that is attractive to them.
I made this decision to sell, sell, sell DAL long positions for clients as the stock market was opening but before DAL had opened since it was experiencing a delayed opening due to order imbalances caused by the stock split announcement.
The arrival of insider purchases reverse the prevailing negative order imbalances from third party trades and lead to piggy-backing by market professionals resulting in subsequent market purchase orders as well as stock price increases.
Amex's proposed market structure will offer market participants a greatly expanded range of automated transaction services across equities and exchange traded funds and will combine the dedicated liquidity provision of an auction market for times of order imbalances, complex trades, or when natural liquidity cannot be found.
To test our hypotheses, we construct daily relative order imbalances for different types of investors.
Amex's proposed hybrid market structure offers market participants automated execution combined with the dedicated liquidity provision of an auction market for times of order imbalances, complex trades, or when natural liquidity cannot be found.
We examine commonality in order imbalances across different types of securities and find that the extent of commonality is greater than previously documented.
In a manner similar to the Closing Cross, NASDAQ disseminates detailed information about any order imbalances during the last several minutes leading into the open.