What is mkt on close buy imbalance

List of Partners vendors. A market-on-close MOC order is a non-limit market order , which traders execute as near to the closing price as they can—either exactly at, or slightly after the market close. The purpose of a MOC order is to get the last available price of that trading day. MOC orders are not available in all markets or from all brokers. EST, as both exchanges close at p. After those times, neither exchange allows traders to modify or cancel MOC orders. A market-on-close order is simply a market order that is scheduled to trade at the close, at the most recent trading price.

The MOC order remains dormant until near the close, at which time it becomes active. Once the MOC order becomes active, it behaves like a normal market order. MOC orders can help investors to get into or out of the market at the closing price without having to place a market order immediately when the market closes.

Traders often place MOC orders as part of a trading strategy. For example, some traders will want to exit at the close by either buying or selling a given financial instrument if a certain price level was breached during the trading day.

MOC orders do not specify a target price, but traders sometimes use MOC orders as a limit-order qualifier—which means that a limit order will be automatically canceled if it isn't executed during the trading day. Using a MOC order in this way ensures that the desired transaction is executed , but it still would leave the investor exposed to end-of-day price movements. Although placing a market-on-close MOC order can guarantee that your buy or sell order will occur at the close of trading, it does not guarantee the price.

There are a number of situations in which an investor might want to get the closing price of a security. Sunday, November 14, Premium: TradeChat.

News All Reuters Business. Home Analysis. November 12, Share on Facebook Share on Twitter. What is a Market On Close Imbalance? November 11, Imbalance. Related Posts. Almanac Trader November 13, Need to Know: Doubting that we could be in a stock-market bubble? Next Post.

Popular Courses. What Is an Order Imbalance? Key Takeaways Order imbalances exist when there is an excess of buy or sell orders for a specific security. Most order imbalances are short-lived but can exist for hours and even the entire day. Using limit orders rather than market orders can help mitigate some of the problems with buying or selling during order imbalances.

Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. An imbalance of orders is when many buy, sell, or limit orders are received by a market exchange, without enough corresponding matching orders for trades to be completed promptly.

Indicative Match Price In the securities market, the indicative match price is the best price at which the greatest number of buy and sell orders can be traded in an auction.

What Does At-the-Market Mean? An at-the-market order buys or sells a stock or futures contract at the prevailing market bid or ask price at the time it gets processed. Imbalance only IO orders are limit orders that will execute only during the opening cross and closing cross on the Nasdaq. What Is a Break in Trading? The imbalance becomes especially meaningful after , when the on-close orders can no longer be changed. The stock exchanges publish the imbalance numbers to attract more orders that could even out the discrepancy.

A closing buy order imbalance may draw sell orders at higher prices to try to lock in some extra profit. If you want to sell stock, you may be able to enter a regular market order or a limit order at a higher price right at the end of the day and pick up a few extra cents on the price you get for your shares.

Tim Plaehn has been writing financial, investment and trading articles and blogs since His work has appeared online at Seeking Alpha, Marketwatch. Plaehn has a bachelor's degree in mathematics from the U. Air Force Academy.

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