An Auction-Only Order is a specialized trading instruction. It allows participants to engage exclusively during designated auction periods on a trading venue, such as a cryptocurrency or stock exchange.
Unlike regular orders that interact with the continuous order book, Auction-Only Orders are activated solely during specific auction phases. This ensures that trades are executed within these structured price discovery events.
Auction-Only Orders become active only during specific instrument states: Opening Auction, Opening Auction Freeze, Intraday Auction, Intraday Auction Freeze, Closing Auction, and Closing Auction Freeze. Outside these states, the orders remain inactive.
They can be entered, modified, or deleted but will not participate in the regular order matching process or influence the published market data. When an instrument transitions into an auction state, all Auction-Only Orders are automatically activated.
Auction-Only Orders can be either market orders or limit orders. Notably, these orders bypass certain validation mechanisms. Specifically, they skip the Price/Reasonability Check and the Extended Price Range Validation.
During an auction state, Auction-Only Orders function like regular orders. They participate fully in the matching process to help determine the auction price. If an Auction-Only Order remains unexecuted after the auction concludes, it does not get deleted automatically. Instead, the order transitions to an inactive state.