posted on 06-06-2019

Zaraba Method

Updated October 1, 2019

What is the Zaraba Method?

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

How Does the Zaraba Method Work?

In the Zaraba 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 Does the Zaraba Method Matter?

The Zaraba method helps exchanges ensure that trading is uninterrupted throughout the trading day, primarily on the Tokyo Stock Exchange. However, the Itayose method helps determine the open and closing prices on the Tokyo Stock Exchange.