At the start of each trading day on the U.S. equity markets, there's a period of time known as the Opening Cross. Jesus is not usually involved. It's just the few minutes around the beginning of the session.
Think of the first few seconds of a horse race: everyone jumping out of the starting gate at once, jockeying for position, bumping into each other. A lot of activity. That happens at the Opening Cross on Wall Street as well, as investors trip over each other to initiate their first trades of the day.
The end of the day sees a similar situation: the Closing Cross. In the last 10 minutes of the session, there's another period of heavy activity, as traders rush to get their final transactions set for the session, or try to close out their positions before the end of regular trading.
Because of all this activity, a lot of imbalances can occur during these key time windows. An imbalance means the system has more buy orders than sell orders...or more sell orders than buy orders. The situation leads to prices that can jump around during the Opening and Closing Crosses.
The net order imbalance indicator supplies information about these imbalances on the NASDAQ. It consists of data about buy and sell orders during the crosses, providing insight about the supply/demand dynamics of particular stocks.
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Finance: What is an All or None Order?70 Views
finance a la shmoop what is an all-or-none order oh you'd think that
spoiled brats only live on playgrounds of participation trophy cities hmm but [Boys holding participation trophies]
that is oh so sadly not true they roam the wild hallways of Wall Street
investment firms in droves and all-or-none order means that a buyer or
seller of stock either wants all of their shares bought or sold or none of
them and yes this applies to bonds preferred stocks and other random [Man discussing stocks and bonds]
hybrids as well.....A buyer has a portfolio of 500 million dollars in small cap
growth stocks generally speaking she's told her clients that she won't take
less than a 2% position in anything because she wants to be able to focus on
a core group of stocks and really be on top of any big movements hoping to sell [Stocks in a sack land on a table]
the shares before well, any huge problems holding so in this case she's
found a company she loves an appropriately named coal company for [Woman looking through binoculars in her car]
spoiled investors called mine mine mine the only problem is that the stock is
thinly traded that is not a ton of shares trade every day and she needs to
own either ten million dollars worth of stock which would be a two percent
position or she doesn't want to own any the stock at the moment is trading at
ten dollars and seven cents a share and she wants it at ten bucks or better...
well at ten dollars and one penny she has no interest whatsoever in that stock [Stock graph for mine mine mine company]
at 10.00 she's a buyer so that is her limit order but on this all-or-none
order she waits and waits and waits knowing that sometimes all-or-none [Woman looking at laptop waiting for the stocks]
orders simply never get filled other times they get filled scarily too fast
like the seller knew something the buyer did not but along comes a bad market day
the White House says something stupid what are the odds? and the market tanks for
an hour and blam she is the proud new owner of a million shares of mine mine
mine good for her those shares are now all hers hers hers [Pigeon poops on mans head]
Up Next
What is a limit order, and how can we be sure we never have one of those in place when we go to a doughnut shop?