BROWSE

Imbalance of Orders

What is 'Imbalance of Orders'

A situation when too many orders of a particular type - either buy, sell or limit - for listed securities and not enough of the other, matching orders are received by an exchange. Also referred to as "order imbalance".

Explaining 'Imbalance of Orders'

Shares experiencing an imbalance of orders may be temporarily halted if trading has already commenced for the day. If it occurs prior to market open, trading may be delayed. Better-than-expected earnings or other unexpected good news can result in a surge in buy orders in relation to sell orders. Likewise, unexpected negative news can bring a large sell-off.


Further Reading


Order imbalance, liquidity, and market returns
www.sciencedirect.com [PDF]
Traditionally, volume has provided the link between trading activity and returns. We focus on a hitherto unexplored but intuitive measure of trading activity: the aggregate daily order imbalance, buy orders less sell orders, on the New York Stock Exchange. Order imbalance  …

Order imbalance and individual stock returns: Theory and evidenceOrder imbalance and individual stock returns: Theory and evidence
www.sciencedirect.com [PDF]
Traditionally, volume has provided the link between trading activity and returns. We focus on a hitherto unexplored but intuitive measure of trading activity: the aggregate daily order imbalance, buy orders less sell orders, on the New York Stock Exchange. Order imbalance  …

Trade size, order imbalance, and the volatility–volume relationTrade size, order imbalance, and the volatility–volume relation
www.sciencedirect.com [PDF]
Traditionally, volume has provided the link between trading activity and returns. We focus on a hitherto unexplored but intuitive measure of trading activity: the aggregate daily order imbalance, buy orders less sell orders, on the New York Stock Exchange. Order imbalance  …

Order imbalances and market efficiency: Evidence from the Taiwan Stock ExchangeOrder imbalances and market efficiency: Evidence from the Taiwan Stock Exchange
www.cambridge.org [PDF]
Traditionally, volume has provided the link between trading activity and returns. We focus on a hitherto unexplored but intuitive measure of trading activity: the aggregate daily order imbalance, buy orders less sell orders, on the New York Stock Exchange. Order imbalance  …

Stock returns, order imbalances, and commonality: Evidence on individual, institutional, and proprietary investors in ChinaStock returns, order imbalances, and commonality: Evidence on individual, institutional, and proprietary investors in China
www.sciencedirect.com [PDF]
Traditionally, volume has provided the link between trading activity and returns. We focus on a hitherto unexplored but intuitive measure of trading activity: the aggregate daily order imbalance, buy orders less sell orders, on the New York Stock Exchange. Order imbalance  …

Order imbalance and stock returns: Evidence from ChinaOrder imbalance and stock returns: Evidence from China
www.sciencedirect.com [PDF]
Traditionally, volume has provided the link between trading activity and returns. We focus on a hitherto unexplored but intuitive measure of trading activity: the aggregate daily order imbalance, buy orders less sell orders, on the New York Stock Exchange. Order imbalance  …

Dynamic relations between order imbalance, volatility and return of top gainersDynamic relations between order imbalance, volatility and return of top gainers
www.tandfonline.com [PDF]
Traditionally, volume has provided the link between trading activity and returns. We focus on a hitherto unexplored but intuitive measure of trading activity: the aggregate daily order imbalance, buy orders less sell orders, on the New York Stock Exchange. Order imbalance  …

The interaction between order imbalance and stock priceThe interaction between order imbalance and stock price
www.sciencedirect.com [PDF]
Traditionally, volume has provided the link between trading activity and returns. We focus on a hitherto unexplored but intuitive measure of trading activity: the aggregate daily order imbalance, buy orders less sell orders, on the New York Stock Exchange. Order imbalance  …

Order imbalances explain 90% of returns of Nikkei 225 futuresOrder imbalances explain 90% of returns of Nikkei 225 futures
www.tandfonline.com [PDF]
Traditionally, volume has provided the link between trading activity and returns. We focus on a hitherto unexplored but intuitive measure of trading activity: the aggregate daily order imbalance, buy orders less sell orders, on the New York Stock Exchange. Order imbalance  …

Global imbalances and financial fragilityGlobal imbalances and financial fragility
pubs.aeaweb.org [PDF]
Traditionally, volume has provided the link between trading activity and returns. We focus on a hitherto unexplored but intuitive measure of trading activity: the aggregate daily order imbalance, buy orders less sell orders, on the New York Stock Exchange. Order imbalance  …



Q&A About Imbalance of Orders


Why do some economists reject the notion that bilateral deficits are inherently bad?

Some economists reject this notion because they believe that there is no reason to expect an inverse relationship between national income levels and current account balances (i.e., nations with higher incomes should run larger current account surpluses).

What does it mean if shares are temporarily halted due to an imbalance of orders?

Shares experiencing an imbalance of orders may be temporarily halted if trading has already commenced for the day. If it occurs prior to market open, trading may be delayed.

What is the balance of trade?

The balance of trade measures a flow of exports and imports over a given period of time.

What is an imbalance of orders?

An imbalance of orders is a situation when too many orders of a particular type - either buy, sell or limit - for listed securities and not enough of the other, matching orders are received by an exchange.

What does it mean if a country has a positive trade balance?

It means that the country exported more than it imported.

What does it mean if a country has a negative trade balance?

It means that the country imported more than it exported.

Are bilateral deficits bad in and of themselves?

Bilateral deficits are not inherently bad; however, they can be problematic depending on their size, whether they are persistent or temporary, and other factors.

When might you expect to see this happen?

Better-than-expected earnings or other unexpected good news can result in a surge in buy orders in relation to sell orders. Likewise, unexpected negative news can bring a large sell-off.

Why do some economists reject the notion that bilateral deficits are inherently bad even when considering income levels?

Some economists reject this notion because they believe that there is no reason to expect an inverse relationship between national income levels and current account balances (i.e., nations with higher incomes should run larger current account surpluses).

If you were going to write about imbalances in international transactions, what would you include in your article besides information about bilateral imbalances?

You could also include information about multilateral imbalances such as those found at the World Trade Organization (WTO) or International Monetary Fund (IMF).

How many countries have positive trade balances as of 216?

About 6 out of 2 countries have positive trade balances.