Stocks & Commodities V. 24:10 (14-15): Q&A by Don Bright
SINCE YOU ASKED
Confused about some aspect of trading? Professional trader Don Bright of Bright Trading (www.stocktrading.com), an equity trading corporation, answers a few of your questions. To submit a question, post your question to our website at http://Message-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S&C.
MARKET ON CLOSE ORDERS
I do not quite understand the imbalance of NYSE and NASDAQ that you mention. Can you articulate?—Kwancy
Sure. First off, the specialists at the NYSE receive market on close orders (MOC) all day until 3:40 pm Eastern; this is not done the same way on the NASDAQ. These can be very large orders where the brokers/banks/funds/ institutions are willing to either buy or sell shares at the final price of the day (the closing price). For example, there may be one million shares to sell (at any price), and 500,000 shares to buy (at any price), all marked MOC. That would leave an imbalance of 500,000 shares extra to sell.