order imbalance investment & finance definition
An
unusually large number of buy or sell orders for a futures contract, stock, or
other investment. Order imbalances often cause the exchange to halt trading
until other buyers or sellers appear. Sell imbalances may occur when a company
experiences bad news, such as a negative earnings pre-announcement. A buy
imbalance may occur if there is unexpected good news.
See order imbalance in Wall Street Words
An excess of buy or sell orders such that it is impossible to match one type of order with its opposite. Order imbalances usually occur after unexpected news causes a rush to buy or sell a security. In extreme cases, an order imbalance may cause suspension of trading in a security for a limited time. Also called imbalance of orders.
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