What is a Continuous Market?

The continuous market is when investors from buyers and sellers continuously entrust to buy or sell listed securities, as long as they meet the transaction conditions, transactions can occur at any time during the trading session, and the transaction price continues to change according to the supply and demand of the purchase and sale. market. The continuous market is divided into the order-driven market and the quote-driven market according to the direct leading force of price formation. The main feature of the order-driven market is that market prices directly reflect the supply and demand of market investors. For example, the securities markets in Japan, South Korea, Singapore and China's Shanghai, Shenzhen, and Hong Kong are order-driven markets. The main feature of the quote-driven market is that the market price directly reflects the number of market intermediaries. For example, the NASDAQ in the United States and London, England and other securities markets are quote-driven markets. ^[1]

Continuous market

Right!

The continuous market is when investors from buyers and sellers continuously entrust to buy or sell listed securities, as long as they meet the transaction conditions, transactions can occur at any time during the trading session, and the transaction price continues to change according to the supply and demand of the purchase and sale. market. The continuous market is divided into the order-driven market and the quote-driven market according to the direct leading force of price formation. The main feature of the order-driven market is that market prices directly reflect the supply and demand of market investors. For example, the securities markets in Japan, South Korea, Singapore and China's Shanghai, Shenzhen, and Hong Kong are order-driven markets. The main feature of the quote-driven market is that the market price directly reflects the number of market intermediaries. For example, the NASDAQ in the United States and London, England and other securities markets are quote-driven markets. ^[1]

Continuous market is divided into order-driven market and quote-driven market according to the direct leading force that forms prices.

The main feature of the order-driven market is that the market price directly reflects the supply and demand of market investors. For example, the securities markets in Japan, South Korea, Singapore and Hong Kong are all order-driven markets. The Shanghai and Shenzhen stock exchanges in China are also entrusted Single drive market.

The main characteristic of the quote-driven market is that the market price directly reflects the number of market intermediaries. For example, NASDAQ in the United States and London, England and other securities markets are quote-driven markets.

The continuous bidding is to determine the transaction price: for a newly entered valid purchase order, if it cannot be concluded, it enters the purchase order queue and waits for the transaction; if it can be concluded, the limit price of its authorized buyer is higher than or equal to the selling order The lowest selling limit price will be executed in sequence with the selling commission queue, and the transaction price will be the seller's asking price. For a newly entered valid sell order, if it fails to enter the transaction, it enters the queue of the sell order and waits for the transaction; if it can be concluded, it means that its sell limit is lower than or equal to the highest buy limit of the buy order. The buyer's entrusted order is executed in order, and the transaction price is the buyer's asking price. This cycle continues until the market closes.