Program trades

Orders requiring the execution of trades in a large number of different stocks at as near the same time as possible. Also called basket trades. Related: Block trade

Program Trade

A large trade executed automatically by a computer on behalf of institutional investors. Program trades are usually open orders in which the computer is programmed to wait until a certain price prevails before buying or selling a large quantity of securities. Because of the large number involved, program trading may lead to increased market volatility; because of this, program trading has been blamed for the 1987 Stock Market Crash, selling automatically as prices were reached, making the problem worse. Exchanges now limit the times when program trades may occur to prevent a recurrence. Program trading is also called basket trading. See also: Algorithmic trading.

References in periodicals archive ?

We define a new variable (PROG) as the proportion of orders that are from program trades calculated for each minute of trading.

Since we learned in Table III that program trades, on average, have a smaller TTC, then it is intuitive that if the average trade size increases due to a higher proportion of program trades, then TTC should decrease.

Cancellation latency: The good, the bad, and the ugly

On most occasions, Rivera would receive directions from Allstate's Portfolio Management Group or the pension plans manager regarding when to buy or sell for large program trades. The trades were then executed within the parameters provided.

Jury awards $27 million in defamation lawsuit to fired Allstate employees

Contract notice: Regional Training Program Trades 2016, On Behalf Of The Ile-De-France - Development Unit

Regional Training Program Trades 2016

Orexo's ADR program trades in the US over-the-counter (OTC) market, under the symbol ORXOY, with each ADR comprised of 1 ordinary share in Orexo AB.

OREXO AB IMPLEMENTS ADR PROGRAM IN UNITED STATES

1 The NYSE calculates program trading as the sum of shares bought, sold and sold short in program trades. The total of these shares is divided by the sum of shares bought, sold and sold short on the NYSE including its crossing sessions.

-Program Trading Averaged 25.8 Percent of NYSE Volume during May 13-17

The volume of stocks exchanged in orders labeled program trades typically averages 10 percent of total volume.

I investigate whether program trades increase the odds of price reversions.

Does program trading cause stock prices to overreact?

Since program trades are only 10 percent of NYSE volume, the index futures markets manage a flow of "synthetic" portfolio trades some 12 times that of the NYSE in a trading session.

The result of this process is a list of issues to buy and sell periodically that can at times be most efficiently handled via a program trade. Other applications involve index funds with slight tilts or increased weights in "cheap" issues at the expense of lower weights in issues deemed overvalued through some analytical process.

Program trading of equities: renegade or mainstream?

Program trades are usually undertaken blind; that is, the broker does not know the exact composition of the portfolio and must use his judgement in deciding whether or not a particular portfolio should be acquired.

The debate over computer-assisted trading: who is right?

Contract awarded for Recruitment Service Training Program Trades Outplacement Center For Social Support For Integration Of Local Board Ex Talca Sros

Provision of recruitment service training program trades outplacement center for social support for integration of local board ex talca sros