Call Auction


DEFINITION of 'Call Auction'

Where participants buy or sell units of a good. At a call auction, participants place orders to buy or sell units at certain buying or selling prices. Orders collected during a call auction are matched to form a contract. Call auction rules vary by auction.

BREAKING DOWN 'Call Auction'

In the securities market, this procedure replaces the method of continuously matching orders. Buyers set a maximum price at which they will buy the shares and sellers set a minimum price at which they are willing to sell the stock shares. Advantages of call auctions include a decrease in price instability.

  1. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  2. Market Order

    An order that an investor makes through a broker or brokerage ...
  3. Auction Market

    A market in which buyers enter competitive bids and sellers enter ...
  4. Matching Orders

    The process for executing securities trades by pairing buy orders ...
  5. Call

    1. The period of time between the opening and closing of some ...
  6. Call Market

    A type of market in which each transaction takes place at predetermined ...
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