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.

BREAKING DOWN '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. Investing Basics

    The Opening Cross: How Nasdaq Stock Prices Are Set

    The National Association of Securities Dealers Automated Quotations, commonly referred to as Nasdaq, is a computerized marketplace where stocks are traded from 9:30am to 4pm Eastern Standard ...
  2. Options & Futures

    The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.
  3. Technical Indicators

    Using Moving Averages To Trade The Volatility Index (VIX)

    VIX moving averages smooth out the natural choppiness of the indicator, letting traders and market timers access reliable sentiment and volatility data.
  4. Technical Indicators

    Detrended Price Oscillator Trading Strategies

    The detrended price oscillator (DPO) offers a simple approach to cycle analysis, removing momentum and long-term trends from the equation.
  5. Charts & Patterns

    Avoid The Perfection Trap In Trading

    Avoid the perfection trap and make peace with the market’s high levels of systematic noise.
  6. Fundamental Analysis

    Spectator Vs. Speculator: Two Market Approaches

    Spectators and speculators rely on different mechanisms to identify and profit from market opportunities.
  7. Investing Basics

    Understanding NASDAQ

    NASDAQ is an acronym that stands for the National Association of Securities Dealers Automated Quotation system.
  8. Investing

    Strategies To Trade The Nasdaq Index

    The Nasdaq is by far the best-known technology index in the world, and there are plenty of strategies to trade on the Nasdaq using ETFs and options.
  9. Investing

    Why Do Companies Choose NASDAQ for Their IPO?

    The NYSE is known for its prestige so why do some companies opt to list on the NASDAQ instead?
  10. Investing Basics

    Is a Stock's Trade Volume Important?

    Stock volume is easy to calculate but understanding its importance is a little more involved. Take the time because it's a worthwhile investing tool.
RELATED FAQS
  1. What is the difference between the Dow and the Nasdaq?

    Because of the way people throw around the words "Dow" and "Nasdaq," both terms have become synonymous with "the market," ... Read Full Answer >>
  2. What are the differences between AMEX and Nasdaq?

    While similar in purpose, the American Stock Exchange (AMEX) and the National Association of Securities Dealers Automated ... Read Full Answer >>
  3. How do I invest in the Nasdaq or the NYSE? Is it even possible? Would I want to?

    The Nasdaq and the NYSE are stock exchanges that trade securities. Nasdaq stands for National Association of Securities Dealers ... Read Full Answer >>
  4. I own shares of a company that just received a delisting notice from Nasdaq. Does ...

    Let's start by walking through the reasons for listing requirements and what happens when a company's stock is delisted from ... Read Full Answer >>
  5. Where can I find information about pre- and after-hours trading on the NYSE and the ...

    The stock market, particularly the NYSE and Nasdaq, is traditionally open between 9:30am and 4pm EST. Over time, with the ... Read Full Answer >>
  6. What's the difference between a Nasdaq market maker and a NYSE specialist?

    What's the main difference between a specialist and a market maker? Not much. Both the New York Stock Exchange (NYSE) specialist ... Read Full Answer >>
  7. What are the listing requirements for the Nasdaq?

    Major stock exchanges, like the Nasdaq, are exclusive clubs - their reputations rest on the companies they trade. As such, ... Read Full Answer >>
  8. Where can I find all of the stocks in the Nasdaq Composite Index?

    F ew stock market indices are as misunderstood as the Nasdaq Composite Index. Due to the burst of the dotcom bubble in 2 ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, followed by the continuation of the downtrend. A dead cat bounce ...
  2. Bear Market

    A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment ...
  3. Alligator Spread

    An unprofitable spread that occurs as a result of large commissions charged on the transaction, regardless of favorable market ...
  4. Tiger Cub Economies

    The four Southeast Asian economies of Indonesia, Malaysia, the Philippines and Thailand. Tiger cub economy indicates that ...
  5. Gorilla

    A company that dominates an industry without having a complete monopoly. A gorilla firm has large control of the pricing ...
  6. Elephants

    Slang for large institutions that have the funds to make high volumes trades. Due to the large volumes of stock that elephants ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!