MARKET STRUCTURE DICTIONARY

QQQ (The Qs)  QQQ is the symbol for the ETF that tracks the NASDAQ 100 index. 

quadruple witching day  A day on which a quadruple witching hour occurs.

quadruple witching hour  The last hour of the official trading session of the major stock exchanges on a day when stock index futures contracts, stock index options contracts, individual stock option contracts, and single stock futures contracts all expire simultaneously.  The last hour of trading is therefore often marked by abnormally high volume and volatility. 

quant fund  A fund that bases its investment decisions on quantitative analysis. 

quantitative investing (trading)  A trading strategy in which computers are programmed with models that make buy and sell decisions and generate orders based on mathematical analysis of measurable data.  An example would be STATISTICAL ARBITRAGE.  See also HIGH FREQUENCY TRADING.

quarter  One quarter of one dollar.  Equivalent to $0.25.  Traditionally, stocks were quoted and traded in eighths and quarters, as in ZVZZT is $25 1/8 bid, offered at $25 1/4.

quarter stock  A stock with a par value of $25.

quick turn  A fast round trip trade, as in I'm not looking for a home run in XYZ, I just bought it for a quick turn.

quotation  See quote.

quotation board  A relatively large electronic display system that provides stock prices and market data.

quotation midpoint  The average of the best bid and the best offer.  Often used as a trading benchmark.

quote  1.  The best bid and the best ask available for a stock as well as the total quantity bid for and offered at those prices.  For example, Right now, XYZ is $30 1/4 - 1/2, 20,000 by 50,000.  2.  A bid and offer available from a particular dealer.  For example, ZVZZT, I'm $25 1/4 - 1/2, 50,000 up or $25 - $25 3/4, 100,000 up.  See also MAKE A MARKET.  3.  An abbreviation of quoted price. 

quote a market  Another term for make a market.

quote driven market  A market in which prices are primarily determined through quote competition between market makers or dealers.  In contrast to an ORDER DRIVEN MARKET.

quote matching  A dubious practice in which one trader trades in front of a relatively large limit order held by another trader using the limit order as downside protection.  Also known as penny jumping. 

Quote Rule  An SEC requirement that exchange specialists and market makers must publish their best quotes publically.  Such traders are allowed to trade at better prices on ECNs if the ECN itself publishes the improved prices and makes them available to the public.  See ORDER HANDLING RULES.

quote stuffing  A method of stock manipulation used in HIGH FREQUENCY TRADING in which computers are programmed to generate and immediately cancel a tremendous number of orders either to create the illusion of activity or to slow down the dissemination of prices to other market participants (thereby creating LATENCY ARBITRAGE opportunities). 

quoted price  The price of the most recent trade in a particular stock. 

Quotron  The first electronic stock quotation system.  Developed by Scantlin Electronics in 1960.  Purchased by Citibank in 1986 and sold to Reuters in 1994.  Ultimately integrated into the Reuters quotation system.