Each trading session is divided into three main moments in which negotiations take place. Opening auction, continuous trading and closing auction. During the auction, through the mechanism of supply / demand is submitted a theoretical price that makes it possible to calculate how many bonds may be exchanged. By contrast in the continuous trading phase contracts are concluded by means of an automatic matching of orders put in order according to a criterion price / time. In this article we explain better how the inclusion of the proposals works.
There are various types of terms for the different prices of financial instruments according to the phase in which they apply. Here is a brief glossary for clarity for the uninitiated.
* Uncrossing price is calculated and continually updated by the system in the pre-auction of both opening and closing.
* Reference price when the auction is closing. Precisely, it is the weighted average of the contracts that were concluded during the last 20 minutes of continuous trading.
* Static price: This term has two meanings. In the context of the auctions of openness it is the reference price of the previous day. Instead, in continuous trading, the price of conclusion of contracts in the auction opening.
* Dynamic price is the price at which the last contract was concluded during the current session either at auction or at continuous trading and unless these were concluded it is equal to the reference price of the previous day.
* The official price is the average of all prices of contracts in a given session. To be precise, it is the weighted average price of the entire amount of an instrument that was negotiated during a session.