What is Call Auction?
A call auction is a trading mechanism where the system collects all users' buy and sell orders within a specified time period and matches them in a single batch according to the principles of "price priority" and "time priority."
The system identifies a reference price that maximizes the trading volume. This price must satisfy the following three conditions:
1. The maximum volume of trades can be matched.
2. Buy orders priced above the reference price and sell orders priced below the reference price can be fully executed.
3. For buy and sell orders equal to the reference price, at least one side is fully filled.
Why Is Call Auction Needed?
The primary purpose of the Call Auction is to reduce significant price fluctuations that may occur due to insufficient liquidity at market open.
By aggregating all buy and sell orders, the system identifies an opening price that represents the strongest market consensus, which ensures stability and fairness in trading.
CoinEx Call Auction Rules
1. During the Call Auction phase, users may freely place orders, but these orders will not be executed immediately. The system will calculate and display a reference price for the Call Auction in real time based on all collected orders.
2. To prevent price manipulation, the pre-market Call Auction is divided into 2 phases:
(1) In phase 1, users may freely place and cancel orders.
(2) In phase 2, users may place orders but CANNOT cancel them.
3. During the Call Auction, users can add liquidity to specific trading pairs with the CoinEx AMM function:
(1) In phase 1, users may remove the added liquidity in 1 minute after being injected.
(2) In phase 2, you can only inject liquidity but CANNOT remove it.
4. At the end of the Call Auction phase, the system will finalize the opening price based on all collected orders. The market will then transition to continuous trading (free-market trading).