Trade execution principles
Trades are executed by auctions according to the priorities of price and time.
  • Opening/closing prices are determined by single price auction.
  • In other cases, trades are executed by multiple prices auction or continuous trading
Trade execution methods
Single price auction (for determining the opening/closing prices)
  • A single price auction method is applied, whereby trading is executed at a single matching price formed based on all the quotations received during a certain period of time.
  • The trades are executed at the price (the matching price) matching as much volume as possible for the bid and offer quantities that have been received during a certain period time.
Continuous trading (For other cases than determining the opening price /closing price)
Quotations are executed immediately after being received according to the price and time priorities.
< Comparison between single price auction and continuous trading >
Single price auction Continuous trading
Trade execution method Intensive execution of quotations that were received during certain period of time Executed promptly whenever executable quotations are submitted
Continuity in price formation Easy to determine prices when liquidity is low Difficult to keep continuity of prices if liquidity is low
Probability of trade execution Relatively low Relatively high