AUTEX

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.

BREAKING DOWN '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. Expunge

    An action that destroys any record of an AUTEX indication. Expunging ...
  2. Block Trade

    An order or trade submitted for sale or purchase of a large quantity ...
  3. Exchange Distribution

    A type of trade made on the floor of a securities exchange in ...
  4. Distribution Stock

    Distribution stock refers to a large block of a security which ...
  5. Equity Market

    The market in which shares are issued and traded, either through ...
  6. Auction Market

    A market in which buyers enter competitive bids and sellers enter ...
Related Articles
  1. ETFs & Mutual Funds

    Understanding Block Trades

    A block trade is the sale or purchase of a large quantity of securities.
  2. Investing

    The Basics Of The Bid-Ask Spread

    The bid-ask spread is essentially a negotiation in progress. To be successful, traders must be willing to take a stand and walk away in the bid-ask process through limit orders.
  3. Investing

    Negotiating the Bid

    A bid is an offer investors make to buy a security.
  4. Markets

    Stock Quotes Explained

    Curious about how stock quotes are compiled and what a trader should know about how? Read on.
  5. Markets

    Day Trading Strategies

    Day trading is the term often used for buying and selling stocks within the same day. Day traders seek to make a profit by leveraging large amounts of capital in order to take advantage of small ...
  6. Financial Advisor

    A Day In The Life Of A Day Trader

    Day trading has many advantages and, while we often hear about these perks, it's important to realize that day trading is hard work.
  7. Managing Wealth

    Small Cap Investing: How to Think About Illiquidity

    Do your homework, have a long term view, exercise patience, you'll find that investing in small market capitalization stocks is no riskier than investing in large stocks
  8. Investing

    What is the Stock Market?

    A stock market is where shares in corporations are issued and traded. Stock markets are key components of a free market economy.
  9. Financial Advisor

    A Day In The Life Of A System Trader

    Systems traders divide their time between trading, developing, backtesting, optimizing and forward testing, to create viable and high-probability trading systems.
  10. Trading

    An Introduction To Day Trading

    This article will take an objective look at day trading, who does it and how it is done.
RELATED FAQS
  1. What do the bid and ask prices represent on a stock quote?

    Learn what the bid and ask prices mean in a stock quote. Find out what represents supply and demand in the stock market and ... Read Answer >>
  2. What does the variance between the bid and ask price of a stock mean?

    Find out how stocks are traded in the market, why the bid and ask prices are different and why the bid-ask spread is smallest ... Read Answer >>
  3. What exactly is being done when shares are bought and sold?

    Most stocks are traded on physical or virtual exchanges. The New York Stock Exchange (NYSE), for example, is a physical exchange ... Read Answer >>
  4. If everyone is selling in a bear market, does your broker have to buy your shares ...

    A broker won't lose money when a stock goes down because he or she is usually nothing more than an agent acting on sellers' ... Read Answer >>
  5. How can a company trade more shares in one day than there are shares outstanding? ...

    The number of shares traded in a single day can be greater than the number of a company's outstanding shares, but this is ... Read Answer >>
  6. What number of shares determines adequate liquidity for a stock?

    Liquidity refers to how easy it is to buy and sell shares without seeing a change in price. If, for example, you bought stock ... Read Answer >>
Hot Definitions
  1. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  2. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  3. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  4. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  5. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  6. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
Trading Center