What are the Nasdaq Opening and Closing Crosses?

To ensure price stability and create a fair, transparent trading environment, Nasdaq uses the Opening Cross to set the opening price and the Closing Cross to determine the closing price each day.

During the cross process, investors submit buy and sell orders, but these orders are not immediately executed. Instead, the exanchge aggregates all the orders to create a single price that maximizes the trading volume. This price becomes the opening or closing price for the day.

The Net Order Imbalance Indicator (NOII) provides essential data during the crossing period, including the reference price, paired shares, and imbalance (unpaired) shares.

What time do the Crosses execute?

Opening Cross:

• Eastern Time (ET): 09:25 a.m. - 09:30 a.m.

Closing Cross:

• Eastern Time (ET): 03:50 p.m. - 04:00 p.m.

How to use Net Order Imbalance Indicator (NOII)

Method 1: Predicting price moves at market open with imbalance shares

If the NOII shows a large positive imbalance, it means there are significantly more buy orders than sell orders. This indicates high demand for the stock, suggesting that the stock price might rise when the market opens. Conversely, if the NOII shows a large negative imbalance, it means there are significantly more sell orders than buy orders, suggesting that the stock price might drop after the market opens.

Method 2: Trading IPO shares

On the day an IPO stock is listed, it does not trade immediately but enters the cross process. During this time, investors can monitor the reference price and the order imbalances through the NOII. This information helps gauge the buying and selling interest, allowing investors to predict the performance of the new stock.

Method 3: Using the reference price to seize last-minute trading opportunities

At the end of each trading day, the Closing Cross determines the final trading price. Investors can use the reference price provided by the NOII to execute their last trades of the day, ensuring they make well-informed decisions based on current market conditions.