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 this study, I examine the stocks of 1,339 companies that began decimal trading on the NYSE on January 29, 2001.

Wood, 2001, "Decimal trading and market impact," Purdue University, working paper.

Decimalization and market liquidity

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. As to institutional order-routing practices, the smaller and easier-to-fill orders more often are routed to electronic brokers, while the larger and more-difficult-to-fill orders are sent to traditional brokers.

Market Microstructure. (Conferences)

Innovation continued with the launch of the Toronto 35 Index in 1987, the introduction of North America's first decimal trading in 1996 and the shift to a floorless, all-electronic environment in 1997.

FAST FORWARD

Under decimal trading, investors will be able to trade at increments of five cents for most stocks, and eventually perhaps in pennies.

DECIMAL PRICING--BOON FOR INVESTORS?

"Decimal trading will benefit investors by allowing greater competition and making it easier to compare prices," SEC Chair Arthur Levitt said.

SEC ORDERS SECURITIES MARKETS TO BEGIN TRADING IN DECIMALS

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