When applied?
For the market opening, market closing and determining of the first price for trading resumption, the price is determined by the method of individual auction at a single price.
Methods of auction
The trading in the market is made through the individual auction, which is classified into the single price auction and the multi-price auction.
Principles for execution: Prioritized according to price and time
  1. An offer placed at a low price is executed earlier than an offer placed at a high price. A bid placed at a high price is executed earlier than a bid placed at a low price.
  2. When the prices of quotations are the same, the quotation submitted to the Exchange system earlier has the priority in execution over the quotation submitted later.
Execution Methods
Trading is executed at a price (a matching price) which can execute as much bids and offers as possible received during a certain period of time.
Matching price
A matching price means a price at which the total quantity of bids accumulated in a descending order of price is squared with the total quantity of offers accumulated in an ascending order of price. The execution price is determined as follows according to the number of matching prices.
Case where there is a single matching price: Executed at the matching price
<Case where there is a single matching price: Executed at the matching price>
Sell (Unit:T) Price Buy (Unit:T) Execution Result
450(◯) 7,860   600T is executed at KRW 7,830,
which is the price that can execute the largest number of quotations.
750(◯) 7,850 100(●)
300(◯) 7,840 150(●)
①150(●), ②200(◑), ③50(◯) 7,830 ①200(●), ②150(●)
200(●) 7,820 400(◯)
150(●) 7,810 500(◯)
  7,800 650(◯)

● : Entirely executed, ◑ : Partially executed, ◯ : Not executed

The numbers, ① and ② indicate the order in which the quotations have been received

Case where there are multiple matching prices: A price which corresponds to any of the followings
  • If there is any price that is the same as the immediately preceding execution price, the price applies.
    < Case where there are two matching prices or more >
    Sell (Unit:T) Price Buy (Unit:T) Execution Result
      7,860   Since, among the 4 matching prices (7,840 / 7,830 / 7,820 / 7,810), there is a price that is the same as the immediately preceding price (7,820), 300T is executed at that price.
      7,850 200(●)
      7,840 100(●)
      7,830  
      7,820 ← Immediately preceding price
    100(●) 7,810  
    200(●) 7,800  

    ● : Entirely executed, ◑ : Partially executed

  • If there is no price that is the same as the immediately preceding execution price, a price that is the closest to the immediately preceding price applies.
    < Case where there are two matching prices or more >
    Sell (Unit:T) Price Buy (Unit:T) Execution Result
      7,860   300T is executed at 7,840, the price which is the matching price closest to the immediately preceding price (7,850)
    Immediately preceding price → 7,850 200(●)
      7,840 100(●)
      7,830  
      7,820
    100(●) 7,810  
    200(●) 7,800  

    ● : Entirely executed, ◑ : Partially executed