Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Continuous Auction Method

What it is:

Also called the Zaraba method, the continuous auction method is a method of trading securities.
 

How it works (Example):

In the continuous auction method, which many Japanese exchanges use, the exchange fills orders by matching them with other orders according to the order price and age. Here is an example of how the method works:

Why it Matters:

The continuous auction method helps exchanges ensure that trading is uninterrupted throughout the trading day, primarily on the Tokyo Stock Exchange. However, the What's this? Itayose method helps determine the open and closing prices on the Tokyo Stock Exchange.