Walrasian Market

AAA

DEFINITION of 'Walrasian Market'

An economic model of a market process in which orders are collected into batches of buys and sells and then analyzed to determine a clearing price that will decide the market price. Also referred to as "call market".

INVESTOPEDIA EXPLAINS 'Walrasian Market'

The NYSE uses a similar process before the opening bell in order to determine opening prices. A specialist will look at all the collected orders for a particular security and select the price that will clear the greatest number of trades. In fact, up until 1871 all trading on the NYSE was executed in this fashion.

RELATED TERMS
  1. Dealer Market

    A financial market mechanism wherein multiple dealers post prices ...
  2. Itayose

    A clearing method used by Japanese commodity exchanges to set ...
  3. Auction Market

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

    A social science that studies how individuals, governments, firms ...
  5. Clearing

    The procedure by which an organization acts as an intermediary ...
  6. Opening Bell

    A bell that is rung to signify the start of the day's trading ...
RELATED FAQS
  1. How do you calculate a reverse split using Excel?

    A reverse stock split is a corporate action a company may take to meet exchange requirements. A reverse split reduces the ... Read Full Answer >>
  2. How do I decide whether a credit card offer is a good deal or not?

    Externalities lead to market failure because the price equilibrium does not accurately reflect the true costs and benefits ... Read Full Answer >>
  3. How is the short interest of a company related to a short squeeze of a company?

    The short interest is a predictor of whether a company is a short squeeze candidate. Generally, when there is a large fluctuation ... Read Full Answer >>
  4. What are some common markets where notional value is used?

    Notional value is commonly used in futures and swap markets. The notional value is the total net amount of derivative contracts, ... Read Full Answer >>
  5. What is the difference between a forward rate and a spot rate?

    The forward rate and spot rate are different prices, or quotes, for different contracts. The forward rate is the settlement ... Read Full Answer >>
  6. What is the difference between a capitalist system and a free market system?

    A capitalist system and a free market system are economic environments where supply and demand are the main factors of price ... Read Full Answer >>
Related Articles
  1. Investing Basics

    Principal Trading and Agency Trading

    Ever wonder what happens behind the scenes when you buy or sell a stock? Read on and find out!
  2. Options & Futures

    Getting To Know The Stock Exchanges

    Here are the answers to all the questions you have about stock exchanges but are too afraid to ask!
  3. Investing Basics

    Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
  4. Charts & Patterns

    Avoid The Perfection Trap In Trading

    Avoid the perfection trap and make peace with the market’s high levels of systematic noise.
  5. Fundamental Analysis

    Spectator Vs. Speculator: Two Market Approaches

    Spectators and speculators rely on different mechanisms to identify and profit from market opportunities.
  6. Trading Strategies

    Best Ways To Find Profitable Intraday Trades

    This checklist can uncover patterns and setups that generate profitable short-term trading opportunities.
  7. Trading Strategies

    Understanding The Price Vs. Time Equation

    Price and time generate vastly different reward: risk profiles.
  8. Active Trading Fundamentals

    How To Avoid The 5 Most Dangerous Market Scenarios

    Recognizing the five most dangerous market scenarios can save a fortune in avoidable losses, setting the stage for long term success.
  9. Options & Futures

    The Basics Of Trading S&P 500 Price Progression

    The S&P 500 index futures contract works exceptionally well as a road map for short-term market timing and direction.
  10. Trading Strategies

    Know How To Manage Gaps On Your Trading Strategy

    Gaps generate profitable strategies right after they print, as well as during retracements that test those levels, often months or years later.

You May Also Like

Hot Definitions
  1. Bogey

    A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the ...
  2. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  3. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  4. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  5. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  6. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!