Significant order imbalance(redirected from Significant Order Imbalances)
Significant order imbalance
Significant Order Imbalance
The excess of buy orders or sell orders for a given security. That is, a significant order imbalance occurs when brokers or investors have made many more orders of one type such that they cannot be matched to orders of the opposite type. Significant order imbalance in either direction reduces the liquidity of a security and thus specialists and market makers attempt to keep order imbalance at the lowest possible level. If the order imbalance becomes too extreme, the exchange may suspend trade.