- A method of matching orders that involves using an auction-like process to trade securities. The orders are organized by both their prices and the time that they were taken. As soon as an order for a security is delivered, it is compared and matched with orders already in the order book. When a bid comes in that matches the price requested by another order, the two orders are executed and taken out of the order book.
The zaraba method is most often associated with the Japanese stock exchanges. Typically, the zaraba method is used during normal trading sessions, whereas a different order matching method, which is called the itayose method, is used to determine the opening and closing prices for each morning and afternoon trading session.
Investment dictionary. Academic. 2012.
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Zaraba method — A Japanese term for the securities trading method where the offer with the best price is given priority … International financial encyclopaedia
Zaraba — A method of trading employed on Japanese exchanges. Under the zaraba method, transactions are consummated by auction based on ( i) price priority in that the selling (buying) order with the lowest (highest) price takes precedence over other… … Financial and business terms