Call Market

Dictionary Says

Definition of 'Call Market'

A type of market in which each transaction takes place at predetermined intervals and where all of the bid and ask orders are aggregated and transacted at once. The exchange determines the market clearing price based on the number of bid and ask orders. A call market is contrasted to an auction market, where orders are filled as soon as a buyer/seller is found for any given order at an agreed upon price.
Investopedia Says

Investopedia explains 'Call Market'

In a call market, the price is set by the exchange so the market will clear, or almost clear, every time orders are filled. This is in stark contrast to the auction market, where prices are determined by buyers and sellers.

Because the call market groups transactions together, there is a substantial increase in liquidity. Although liquidity is generally considered to be a good quality in any marketplace, sellers may lose some of the liquidity premium, which is can be substantial.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Liquidity

    1. The degree to ...
  2. Core Liquidity Provider

    An underwriter ...
  3. Liquidity Risk

    The risk ...
  4. Auction Market

    A market in ...
  5. Ask

    The price a ...
  6. Bid

    1. An offer made ...
  7. Call Auction

    Where ...
  8. Boom

    A period of time ...
  9. Industry

    A classification ...
  10. Prisoner's Dilemma

    A paradox in ...

Articles Of Interest

  1. Is Your Broker Acting In Your Best Interest?

    Learn the clues you'll need to determine whether you've chosen a reputable professional.
  2. A Look At Primary And Secondary Markets

    Knowing how the primary and secondary markets work is key to understanding how stocks trade.
  3. Introduction To Level II Quotes

    Find out what's happening in a given stock with this service showing Nasdaq market makers' best bid and ask prices.
  4. What is the difference between a broker and a market maker?

  5. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
  6. The Uses And Limits Of Volatility

    Check out how the assumptions of theoretical risk models compare to actual market performance.
  7. Risk Tolerance Only Tells Half The Story

    Just because you're willing to accept a risk, doesn't mean you always should.
  8. 5 Tips For Diversifying Your Portfolio

    A diversified portfolio will protect you in a tough market. Get some solid tips here!
  9. Invest Like A Pro

    By following the strategies of the pros, even a beginner can learn to invest like an expert.
  10. 5 Nobel Prize-Winning Economic Theories You Should Know About

    Here are 5 prize-winning economic theories that you’ll want to be familiar with.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center