AUTEX

AAA

DEFINITION of 'AUTEX'

AUTEX is an electronic platform from Thomson Financial that allows potential buyers or sellers of a large block of shares to identify other large traders on the bid and ask side of a particular stock. By showing "trade advertisements" in a stock issue, the interface presents indicators of interest among traders who wish to get a feel for the market liquidity before executing a large trade.

INVESTOPEDIA EXPLAINS 'AUTEX'

Imagine two traders in Company XYZ stock, one looking to sell 100,000 shares and another looking to purchase 100,000 shares. By showing interest on the AUTEX system, they can identify each other without the risk of placing a large market order that could push the stock higher due to the immediate share imbalance. Once interest has been established on both sides of the trade, the trade will be executed in the standard manner, whether it be on the stock exchange or over-the-counter.

RELATED TERMS
  1. Block

    A large amount of the same security bought or sold by institutional ...
  2. Bloomberg Terminal

    A computer system that allows investors to access the Bloomberg ...
  3. Volume

    The number of shares or contracts traded in a security or an ...
  4. Liquidity

    1. The degree to which an asset or security can be bought or ...
  5. Market Order

    An order that an investor makes through a broker or brokerage ...
  6. Block Trade

    An order or trade submitted for sale or purchase of a large quantity ...
RELATED FAQS
  1. What is the difference between business intelligence and competitive intelligence?

    Competitive intelligence is the act of understanding a company's industry and industry rivals so the company can make better ... Read Full Answer >>
  2. What's the difference between an index fund and an ETF?

    Learning investing basics includes understanding the difference between an index fund and an exchange-traded fund, or ETF. ... Read Full Answer >>
  3. What commodities are not tradable?

    As of February 2015, commodities that are not tradable include diamonds, tomatoes, carbon dioxide, lemons, eggs, potatoes, ... Read Full Answer >>
  4. How does investing in the banking sector differ between the U.S. and Canada?

    Banks in the U.S. and Canada offer different sets of pros and cons for investors. Shares of all Canadian banks are traded ... Read Full Answer >>
  5. Should I attempt to trade futures myself using software, or is this better left in ...

    The question of whether to do your own futures trading or opt for a managed account that a professional trades on your behalf ... Read Full Answer >>
  6. How do I place a limit order online?

    Nearly all trading orders can be placed online through a trading platform usually provided by a broker. A limit order is ... Read Full Answer >>
Related Articles
  1. Forex Education

    Forex: Demo Before You Dive In

    All trading platforms have benefits and drawbacks - master the fake trade before making a real one.
  2. Options & Futures

    Direct Access Trading Systems

    DATs can dramatically speed up order execution - find out how this system gives novice traders an edge.
  3. Retirement

    Electronic Trading Tutorial

    Learn about the systems that run the market. Topics include market makers, specialists, SuperDOT, ECNs, SOES, Level I, II, and III Access, and more.
  4. Investing

    TradeKing Vs. TradeStation: Which Meets Your Needs?

    Each of these two online brokerage firms offers a package of benefits, features and services that meets a distinct type of investor's needs.
  5. Professionals

    Top Strategies on How to Become a Stock Broker

    Gunning to be a stock broker and want an edge? Here's some veteran advice.
  6. Trading Systems & Software

    Steps to Starting Up an Independent Broker Dealer

    Launching your own broker-dealer is a lot of work, but the potential payoff is great, both personally and financially.
  7. Trading Systems & Software

    Top 10 Brokerage Firms For Day Trading

    Day traders have different needs from long-term investors. Investopedia rates the top 10 brokerage firms for day traders.
  8. Trading Systems & Software

    How To Trade Real Stocks For Free

    Online brokerages have significantly lowered the cost to invest, and some new brokers are challenging the status quo even more by offering fee-free trades.
  9. Brokers

    Can Tradier's Brokerage API Replace Traditional Brokers?

    Tradier, an up-and-coming brokerage firm that’s carving a niche for itself as the world’s “first brokerage API company,” according to spokesperson Frances Del Valle.
  10. Investing Basics

    How To Outperform Warren Buffett Using Market Simulators

    That moment when you realize you just booked $108 million dollars in less than an hour: it puts butterflies in your stomach.

You May Also Like

Hot Definitions
  1. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  4. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  5. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  6. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
Trading Center