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Finance Dictionary and Glossary of Investment Terms
imbalance of orders
A situation in which buy orders for a particular security greatly outnumber sell orders, or vice-versa. This may result in a temporary trading halt for that security, in order to prevent massive price swings. Imbalances of orders are usually caused by significant news announcements affecting the issuer of the security. also called order imbalance.
An imbalance occurring when too many of one type of order, either buy or sell, has been received for a particular stock.
Used for listed equity securities. Too many market orders of one kind-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 thensuspends trading (with floor governor's approval) until enough matching orders can be found to make an orderly market.