BROWSE

Call Auction

What is '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.

Explaining '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.


Further Reading


Closing call auctions and liquidity
onlinelibrary.wiley.com [PDF]
… aSchool of Banking and Finance, University of New South Wales and Capital Markets Cooperative Research … The present paper examines the impact of closing call auctions on liquidity. It exploits the natural experiment offered by the introduction of a closing call auction on the …

The influence of call auction algorithm rules on market efficiencyThe influence of call auction algorithm rules on market efficiency
www.sciencedirect.com [PDF]
… aSchool of Banking and Finance, University of New South Wales and Capital Markets Cooperative Research … The present paper examines the impact of closing call auctions on liquidity. It exploits the natural experiment offered by the introduction of a closing call auction on the …

Call auction algorithm design and market manipulationCall auction algorithm design and market manipulation
www.sciencedirect.com [PDF]
… aSchool of Banking and Finance, University of New South Wales and Capital Markets Cooperative Research … The present paper examines the impact of closing call auctions on liquidity. It exploits the natural experiment offered by the introduction of a closing call auction on the …

Price-formation process of an emerging futures market: Call auction versus continuous auctionPrice-formation process of an emerging futures market: Call auction versus continuous auction
www.tandfonline.com [PDF]
… aSchool of Banking and Finance, University of New South Wales and Capital Markets Cooperative Research … The present paper examines the impact of closing call auctions on liquidity. It exploits the natural experiment offered by the introduction of a closing call auction on the …

Price limits on a call auction market: Evidence from the Warsaw Stock ExchangePrice limits on a call auction market: Evidence from the Warsaw Stock Exchange
www.sciencedirect.com [PDF]
… aSchool of Banking and Finance, University of New South Wales and Capital Markets Cooperative Research … The present paper examines the impact of closing call auctions on liquidity. It exploits the natural experiment offered by the introduction of a closing call auction on the …

Price Discovery of the Close-and-open Call Auction Mechanism <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-XTLL200602001.htm' />Price Discovery of the Close-and-open Call Auction Mechanism [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-XTLL200602001.htm'>PDF]
… aSchool of Banking and Finance, University of New South Wales and Capital Markets Cooperative Research … The present paper examines the impact of closing call auctions on liquidity. It exploits the natural experiment offered by the introduction of a closing call auction on the …

Commodity trading using an agent-based iterated double auctionCommodity trading using an agent-based iterated double auction
dl.acm.org [PDF]
… aSchool of Banking and Finance, University of New South Wales and Capital Markets Cooperative Research … The present paper examines the impact of closing call auctions on liquidity. It exploits the natural experiment offered by the introduction of a closing call auction on the …

The switch from continuous to call auction trading in response to a large intraday price movementThe switch from continuous to call auction trading in response to a large intraday price movement
www.tandfonline.com [PDF]
… aSchool of Banking and Finance, University of New South Wales and Capital Markets Cooperative Research … The present paper examines the impact of closing call auctions on liquidity. It exploits the natural experiment offered by the introduction of a closing call auction on the …

Designing call auction institutions: is double Dutch the best?Designing call auction institutions: is double Dutch the best?
www.jstor.org [PDF]
… aSchool of Banking and Finance, University of New South Wales and Capital Markets Cooperative Research … The present paper examines the impact of closing call auctions on liquidity. It exploits the natural experiment offered by the introduction of a closing call auction on the …



Q&A About Call Auction


Who are the participants in a call auction?

The participants are buyers and sellers.

Where do orders collected during a call auction go?

Orders collected during a call auction go to form contracts.

What happens when there are no more bids at an open-outcry market?

At this point, the market moves to continuous trading where orders are matched continuously instead of at specific times like in an open-outcry market. This allows for greater liquidity because it allows for faster transactions between buyers and sellers without having to wait until the next time period or day that they can trade their shares with others who want them. This also reduces volatility because it makes it harder for one person's actions to have such large effects on share prices since they cannot affect how many people want to buy or sell their stock shares at any given time as easily as they could with an open-outcry market system where everyone has to be present at once in order for trades to happen (and thus can easily all act together). It also reduces costs by reducing transaction costs since fewer transactions need to occur each day/hour/minute/etc., so less money needs to be spent on things like commissions per transaction (which would add up quickly if you were buying and selling your stocks multiple times every single day). It also increases liquidity by making it easier for people who want stock shares but don't already own any yet (because maybe they just heard about them today) to get

How does the price of shares change at a call auction?

Price of shares changes based on demand for the stock. If there is high demand, then prices will increase, and if there is low demand, then prices will decrease.

What is a call auction?

A call auction is an auction in which participants buy or sell units of a good.

Leave a Reply

Your email address will not be published. Required fields are marked *