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.

What are some examples of call markets?

Some examples of call markets include: A call market is a type of financial market where trading occurs at specific times. All buy and sell orders are collected over a period and then executed simultaneously at a single price, known as the call price. In a call market, orders are accumulated over a set period rather than being executed immediately.