Call Market

A type of market in which each transaction takes place at predetermined intervals and where all of the bid and ask orders are aggregated and transacted at once. The exchange determines the market clearing price based on the number of bid and ask orders. A call market is contrasted to an auction market, where orders are filled as soon as a buyer/seller is found for any given order at an agreed upon price.

In a call market, the price is set by the exchange so the market will clear, or almost clear, every time orders are filled. This is in stark contrast to the auction market, where prices are determined by buyers and sellers.

Because the call market groups transactions together, there is a substantial increase in liquidity. Although liquidity is generally considered to be a good quality in any marketplace, sellers may lose some of the liquidity premium, which is can be substantial.


Investment dictionary. . 2012.

Look at other dictionaries:

  • call market — noun : the market for call loans * * * the market for lending call money. [1870 75] * * * call market, the market for call loans …   Useful english dictionary

  • call market — the market for lending call money. [1870 75] * * * …   Universalium

  • Market fundamentalism — (also known as free market fundamentalism) is a pejorative term applied to a strong belief in the ability of laissez faire or free market economic views or policies to solve economic and social problems.[1] Critics of free market extremism have… …   Wikipedia

  • Market Watch — Not to be confused with MarketWatch. Market Watch Format business news program, talk show Presented by …   Wikipedia

  • Märket — Island with the unusual national border of 1985. Märket Island with t …   Wikipedia

  • Market Wrap — Format business news program, talk show Presented by Maria Bartiromo Bill Griffeth Sue Herera …   Wikipedia

  • Call signs in North America — are frequently still used by North American broadcast stations in addition to amateur radio and other international radio stations that continue to identify by call signs around the world. Each country has a different set of patterns for its own… …   Wikipedia

  • market — mar·ket n 1: the rate or price at which a security or commodity is currently selling: market price 2 a: a geographical area of demand for commodities or services seeking new foreign market s b: a formal organized system en …   Law dictionary

  • Market gardening — Market garden redirects here. For the World War II operation, see Operation Market Garden. In agriculture, market gardening is the relatively small scale production of fruits, vegetables and flowers as cash crops, frequently sold directly to… …   Wikipedia

  • call — 1 vt 1: to announce or recite loudly call ed the civil trial list 2: to admit (a person) as a barrister was call ed to the bar 3: to demand payment of esp. by formal notice call …   Law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.