Net Order Imbalance Indicator (NOII)

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.



Filed Under: ,

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by additional investment would not warrant the expense. A harvest strategy is employed when a line of business is considered to be a cash cow, meaning that the brand is mature and is unlikely to grow if more investment is added.
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will be executed at a specified price (or better) after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy (or sell) at the limit price or better.
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The principle states that, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes.
Trading Center