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Old Business

Any transactions in the market that are closing or adjusting positions that were already entered in a previous session.  This is in contrast to “new business” which is the term for trades by market participants who are entering a new position in a security for the first time.  It is a general rule that the market transacts old business before it transacts new business.  We see this most clearly on large gaps in the futures market.  When those gaps fill, that is old business being transacted as the overnight traders are taking profits on positions that they already entered prior to the RTH session starting.