#TermoftheDay
- Periodic Call Auction
Alex Maria: It is a trading mechanism implemented by sebi
for all illiquid stocks (such as avg daily trading
volume is less than 10000 in a quarter, average daily nonpf trades is less than
50 in a quarter) in equity market to be traded in a different way during normal
trading hours.. it will be conducted in sessions where each session longing for
one hour where 45 mins for 45 mins for order entry/modification, next 8 min for
trade execution and the last 7 mins for idle time for transition to the next
session.
Suresh
Baskaran: Periodic call
auction is a process to limit the volatility in a illiquid
stocks (stock with less volumes, less no of trades, less traded value). This
call auction is done every one hour starting at 9.30 am. Each session has three
phases. First 45 minutes for trade entry, modification and cancellation; next 8
mins for matching orders and trade confirmation; next 7 minutes are buffer time
for closing that particular session. These order entry is valid for that one
hour session only. Trade will executed if matching orders are there in that
particular session.
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