Net Order Imbalance Indicator (NOII)

AAA

DEFINITION of 'Net Order Imbalance Indicator (NOII)'

Order imbalance information about the opening and closing crosses on the Nasdaq disseminated to market participants prior to executing the crosses. The Net Order Imbalance Indicator (NOII) shows the true supply and demand for a stock, based on actual buy and sell orders, 10 minutes before market close and five minutes before market open. The NOII therefore enhances market participants’ trading ability and helps them spot new trading opportunities. It also increases market transparency by supplying users with detailed information about opening and closing orders, as well as likely opening and closing prices for a security.

INVESTOPEDIA EXPLAINS 'Net Order Imbalance Indicator (NOII)'

The NOII information is disseminated every five seconds between 9:28am and 9:30am EST for the opening cross, and between 3:50pm and 4pm for the closing cross.

The NOII provides invaluable information on order imbalances, since it includes the following data elements:
  • Near indicative clearing price: This is the crossing price at which orders in the Nasdaq opening/closing book and continuous book would clear against each other at the dissemination time.
  • Far indicative clearing price: The crossing price at which orders in the Nasdaq opening/closing book would clear against each other at the dissemination time.
  • Current reference price: The reference price within the Nasdaq Inside (i.e. the highest bid / lowest ask) at which paired shares (matched buy and sell market orders) are maximized and the order imbalance is minimized.
  • Number of paired shares: The number of shares that can be paired off at the current reference price.
  • Imbalance quantity: The size of the imbalance, i.e. the number of opening or closing shares that would remain unexecuted at the current reference price.
  • Imbalance side: Denotes whether a buy-side or sell-side imbalance exists, or whether there is no imbalance.
RELATED TERMS
  1. Opening Imbalance Only Order (OIO) ...

    Limit orders that provide liquidity during the opening cross ...
  2. Imbalance Only Orders (IO)

    Limit orders that provide liquidity during the opening cross ...
  3. CBOE Nasdaq Volatility Index - ...

    A measure of market expectations of 30-day volatility for the ...
  4. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  5. Opening Cross

    A method used by the Nasdaq to determine the opening price for ...
  6. Nasdaq SmallCap Market

    The Nasdaq equity market for companies that have relatively small ...
Related Articles
  1. What is the difference between the Dow ...
    Investing

    What is the difference between the Dow ...

  2. The Opening Cross: How Nasdaq Stock ...
    Investing Basics

    The Opening Cross: How Nasdaq Stock ...

  3. The NYSE And Nasdaq: How They Work
    Options & Futures

    The NYSE And Nasdaq: How They Work

  4. What are the differences between AMEX ...
    Options & Futures

    What are the differences between AMEX ...

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center