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6,79%Trading Methods
Securities trading at the Exchange sessions can be organized by the following methods of trading:
1. single price method and
2. continuous trading method.
Block trading is a block transaction in a security traded at the regulated market or MTP, which has been concluded outside the session at which trading is conducted by the single price auction method or continuous trading method, in the bilateral relation of one buyer and one seller and according to conditions prescribed by the Rules.
For securities trading the fluctuation zone is determined.
Fluctuation zone is the largest possible price deviation from the reference price, e.g. the price range within which the transaction is permitted at the same trading session.
Single price method
In the single price method the members place trading orders in the pre-opening phase, and the price is determined during the auction phase based on the placed trading orders.
During the single price determination the following criteria are applied:
1. maximization of the trading volume,
2. minimization of the difference between the possible price and the reference price.
The single price is determined as the price of the greatest trading volume measured by the amount of the given security.
Continuous trading method
Trading orders continuously placed to the trading system in the continuous trading method, in the countinous trading phase, are entered into the electronic order book.
The trading system continuously compares the price conditions and the quantity of the existing placed but unexecuted orders to the newly placed trading orders, and when the conditions of trading orders permit, the transaction is concluded.
Trading orders waiting for execution are executed according to the price priority of the order, and if the prices in two or more orders are equal, the priority is given to the order placed earlier.
The execution of a particular trading order is possible if an order of the opposite type transaction exists in the trading system with the price equal or better than the active status order waiting for execution.
The at-the-close price is determined as the average weighted price of the traded units of each security during the trading session.
More information on particular trading methods can be found in the Rules of Business Operations of the Belgrade Stock Exchange.
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