Business, Legal & Accounting Glossary
A method of filling stock orders by matching them with standing orders based on the price and the age of the standing orders. Also referred to as the auction method, it provides for an uninterrupted flow of stock executions throughout the trading day.
A method of matching orders that involves trading securities through an auction-like process. Orders are categorised according to their price and the time they were placed. As soon as a security order is delivered, it is compared and matched against existing orders in the order book. When a bid matches the price specified in another order, both orders are executed and removed from the order book.
The zaraba method is most frequently associated with Japanese stock exchanges. During normal trading sessions, the zaraba method is typically used, whereas a different order matching method known as the itayose method is used to determine the opening and closing prices for each morning and afternoon trading session.
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This glossary post was last updated: 26th January, 2022 | 0 Views.