Trading & Market Structure
Closing Auction
Definition
What is Closing Auction?
An end-of-session process that matches orders at a single closing price.
Example in practice
How This Looks in Practice
Index funds trade heavily in the closing auction to match benchmarkA reference index or rate used to evaluate a fund's performance. weights.
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Related Terms
Trading & Market Structure
Bid
The highest price a buyer is currently willing to pay for a security.
Trading & Market StructureAsk
The lowest price a seller is currently willing to accept for a security.
Trading & Market StructureBid-Ask Spread
The difference between the best available buying and selling prices.
Order TypesMarket Order
An instruction to buy or sell immediately at the best available prices.