Call Auction

A call auction is a trading mechanism where buyers and sellers submit their orders within a specified time frame before the trading session begins. During the call auction period, orders are collected, and a single price is determined based on the supply and demand imbalance. 

This price is known as the auction price, and all trades executed during the call auction occur at this price. Call auctions are commonly used in financial markets to facilitate price discovery, reduce volatility, and enhance market efficiency. By allowing participants to submit orders before the market opens, call auctions provide transparency and equal opportunity for all traders to participate in the opening trade. Call auctions are particularly useful in illiquid markets or during times of high volatility, as they help establish a fair market price before regular trading begins.