Itayose

Categories: Trading, Metrics

A Japanese method to set opening and closing exchange prices. All orders received before the exchange opens are counted as arriving at the same time; a provisional price is offered, and then there’s an order acceptance period, and all these rules to determine what the price will be, and if the transaction will even happen.

The point is to maximize trade volume under the price/time authority rule, which gives market orders precedence over limit orders.

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