Dictionary of Finance and Investment Terms: matched orders
matched orders
- illegal manipulative technique of offsetting buy and sell orders to create the impression of activity in a security, thereby causing upward price movement that benefits the participants in the scheme.
- action by a specialist to create an opening price reasonably close to the previous close. When an accumulation of one kind of order- either buy or sell-causes a delay in the opening of trading on an exchange, the specialist tries to find counterbalancing orders or trades long or short from his own inventory in order to narrow the spread.
