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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

imbalance of orders

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Because order imbalances are known to be related to stock returns (Chordia et al., 2002; Chordia and Subrahmanyam, 2004; Narayan et al., 2015), we try to draw a causal link between order imbalances of the three trading groups and short-term returns.
24, 2015, without a rule in effect to permit them - a move that resulted in order imbalances being resolved more slowly.
Additionally, bid/ask spreads and order imbalances do not explain the return pattern.
Order imbalances could take small investors unawares, and the concept of a trading halt would be nonexistent.
However, earlier studies do not report that buy and sell order imbalances are cyclical.
Therefore, all sample firms, with or without exposure to Lehman, should have greater bid-ask spreads, increased trading activities, higher price impacts of trade, greater levels of information asymmetry, and greater sell order imbalances on the disclosure day compared to the control period.
Order imbalances calculated from signing trades relative to quotes also predict reversals and are complementary to inventories and past returns.
Because of order imbalances and heavy demands on the market makers, many stocks were "halted" on the opening and we base our evaluations on the behavior of these "halted" securities relative to the behavior of the continuously traded stocks.
Therefore, we test for a relation between both types of selling and intraday returns in a panel regression that controls for order imbalances and liquidity:
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.
In contrast, for those cold and neutral IPOs with open-to-close returns less than 3.58%, 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.