Opening Imbalance Only Order (OIO)
 |
Definition of 'Opening Imbalance Only Order (OIO) 'Limit orders that provide liquidity during the opening cross on the Nasdaq. Opening Imbalance Only (OIO) orders are only executable on the opening cross and are not displayed or disseminated. OIO buy orders only execute at or below the 9:30am bid price, while OIO sell orders only execute at or above the 9:30am offer price. OIO orders must necessarily be limit orders; market OIO orders are not permitted. Since OIO orders are only executable during the opening cross, they are not at risk of being executed prior to market open, unlike continuous market orders. |
 |
Investopedia explains 'Opening Imbalance Only Order (OIO) 'OIO buy or sell orders that are priced more aggressively than the 9:30am Nasdaq highest bid or lowest offer prior to market open will be re-priced to the Nasdaq bid or offer before the opening cross is executed. So, for example, if an OIO buy order price is $9.95 and the Nasdaq bid is at $9.93, the OIO order will be re-priced to $9.93. This adds liquidity to the market and helps ensure that Market-On-Open (MOO) and Limit-On-Open (LOO) orders are executed. OIO orders are accepted on the Nasdaq from 7am onward. However, market participants cannot update these orders after 9:28am, although new OIO orders can still be entered after that time. |
Related Definitions
Articles Of Interest
-
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 ... -
Understanding Order Execution
Find out the various ways in which a broker can fill an order, which can affect costs. -
Why can't I enter two sell orders on the same stock?
To answer this question, let's look at a few different situations. You bought a stock for $10 but want to be able to protect against loss, so you decide you want to enter a sell order if the ... -
How To Place Orders With A Forex Broker
Learn how to set each type of stop and limit when trading currencies. -
The Stop-Loss Order - Make Sure You Use It
It's a simple but powerful tool to help you implement your stock-investment strategy. Find out how. -
What's the difference between a stop and a limit order?
Different types of orders allow you to be more specific about how you'd like your broker to fulfill your trades. When you place a stop or limit order, you are telling your broker that you don't ... -
Why does my broker allow me to enter only day orders for short selling?
Put simply, brokerage firms restrict short sales to day orders because of the complexity of the short sale transaction and the difficulty in authorizing shares to be short sold in a rapidly changing ... -
I placed a limit order to buy a stock after the market closed, but the stock's price gapped above the entry price and my order never got filled. How can I prevent this from happening?
The scenario you describe is very common and can be frustrating for any type of investor. Many traders will identify a potentially profitable set-up and place a limit order after hours so their ... -
Can you place a stop-loss order on a mutual fund?
First, remember that a stop-loss order is a limit order placed with a broker to sell a stock when it reaches a certain price. It is designed to limit an investor's loss on a stock position. Therefore, ... -
At what point in the ordering process does a broker charge commission?
When placing a market order for a security through a broker, there will be a commission accompanying the service. The fee charged can vary depending on whether the order is filled, canceled, ...
Free Annual Reports