// TRADING TERMINOLOGY
What is Imbalance?
A situation in the market where there is an excess of buy orders over sell orders (or vice versa).
In-Depth Explanation
Imbalances lead to rapid price movements as the market searches for the next level of liquidity to match the orders. In order flow trading, imbalances are visible on footprint charts.
Practical Example
"A massive buying imbalance at the London open drove the FTSE 100 up by 50 points in minutes."
Related Terms
Master the language of risk
Knowing the terms is just the start. Learning how to apply them is where the edge is found.
Join Drawdown Free