Buy Order Imbalance

Buy Order Imbalance - A buy order imbalance generally occurs around one hour before the stock market is scheduled to close, after there is late breaking news that prompts many investors to buy a large number of securities. When a buy order imbalance occurs, information on this imbalance is distributed quickly by the exchanges and other media sources in an attempt to try to minimize any disparity that may be caused. Although in extreme situations, trading is often halted altogether on the specific security that is in question, and the market closes without taking buy orders.