What is a call market?

In the call market, the auctioneer calls for buy and sell security orders and groups them for execution at designated times during the business day. The role of the auctioneer is to balance the supply and demand for a security in a better way to reach a clearing price. Both buy and sell orders on the exchange shall be made at the clearing price.

How does a call stock market work?

The clearing price is decided by the best overall match of the prices. A Call stock market is used only for illiquid assets or low trading density or volume. Also termed “Call Auction,” it involves matching clustered buy and sell orders accumulated at particular times.

Can a call market call all securities at the same time?

Since there are many securities to be traded, a call market may call all the securities at the same time or the securities may be called one after the other, in rotation. When operating in rotation, the call market may call all securities in one rotation.

What is the difference between a call and a continuous market?

The main difference between a call and a continuous market lies in price determination. The recurring order amount is the price in a call market, while market forces establish the price in a continuous market. However, both trading systems require the presence of buyers & sellers for trade execution.