What is the nearby market?
The market for a nearby (power) is a type of market order that is aimed at selling or purchasing shares should be as close as possible to the end of the trading day. The market with close orders can be used for various reasons and different ways. Most computer programs that are designed to help people make financial transactions offer this type of market order as an option when they are preparing to buy or sell shares. At the end of the trading day there are a number of reasons to have a market order. One of the most common is the desire to take advantage of the advantages that may occur at the end of the trading day; If, for example, the investor knows that the value of the shares tends to rise at the end of the day, at the end of the day it can issue a market order for sale to take advantage of this higher price.
Power can also be issued if someone suspects that events for which they are expected will cause an increase or drop in stock price. For example, if the manufacturer plans to announce quarterly earnings, the market for closure allows the investor toOvi easily get or out. People can also issue this kind of order when they are not available at the end of the business day and believe that shares should be bought or sold because the market is going to close.
occasionally, a situation known as an imbalance may develop. The nearby imbalance market occurs when the company issues an order for the sale or purchase of a large volume of shares and the company representatives cannot fill the order quickly. In this case, representatives publish information about imbalance close to the end of the business day and provide people on the trade floor the opportunity to fill in the imbalance. Such imbalance can raise prices up or down as peoposics to take advantage of imbalances.
The market for a strict sale can reduce the price of shares as it can be unloaded at a low price in order to meet the order conditions. On the other hand order of purchase can push stock prices because people jockey to fill their market in close ordersAnd other traders are notified of the situation.