Many investors will buy a stock if the volume increases because it is interpreted that news is about to come out. Matching orders costs virtually nothing for brokers. This is a highly illegal practice.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Orders of magnitude (numbers) — The logarithmic scale can compactly represent the relationship among variously sized numbers. This list contains selected positive numbers in increasing order, including counts of things, dimensionless quantity and probabilities. Each number is… … Wikipedia
imbalance of orders — Used for listed equity securities. Too many market orders of one kind buy or to sell or limit orders to buy up or sell down, without matching orders of the opposite kind. An imbalance usually follows a dramatic event such as a takeover, research… … Financial and business terms
Imbalance of Orders — A situation when too many orders of a particular type either buy, sell or limit for listed securities and not enough of the other, matching orders are received by an exchange. Also referred to as order imbalance . Shares experiencing an imbalance … Investment dictionary
Electronic trade matching — is a process whereby a computer system matches buy and sell orders for a security on a stock market or commodities market. Electronic trade matching was introduced in the early 1990s in the United States to supplement open outcry trading. In… … Wikipedia
order matching — The process of automatically matching and executing buy and sell orders. Order matching is carried out by the system. London Stock Exchange Glossary … Financial and business terms
auction matching — Auction Matching/ Auction Match Algorithm The process that matches orders at the end of an auction and determines the auction price. London Stock Exchange Glossary … Financial and business terms
security — /si kyoor i tee/, n., pl. securities, adj. n. 1. freedom from danger, risk, etc.; safety. 2. freedom from care, anxiety, or doubt; well founded confidence. 3. something that secures or makes safe; protection; defense. 4. freedom from financial… … Universalium
Zaraba method — A method of matching orders that involves using an auction like process to trade securities. The orders are organized by both their prices and the time that they were taken. As soon as an order for a security is delivered, it is compared and… … Investment dictionary
Call Auction — Where participants buy or sell units of a good. At a call auction, participants place orders to buy or sell units at certain buying or selling prices. Orders collected during a call auction are matched to form a contract. Call auction rules vary… … Investment dictionary
outside of you — Used for listed equity securities. Another order bidding for or offering stock at the same price that the trader has put on the floor himself, represented by another broker in the trading crowd. These orders may have different price limits… … Financial and business terms