The opening price is the first transaction of the contract after the market opens on the trading day. In trading, the opening price is a very important indicator, which reflects the expectations of market participants and the relationship between supply and demand, and has an important impact on market movements. So, how is the opening price determined?
1. Call Auction.
In ** trading, the opening price is generated through a call auction. Call auction means that within 5 minutes before the opening of the market, all investors declare the purchase and sale ** and quantity according to certain rules, and then the system matches the ** according to certain principles. During the call auction, investors cannot conduct continuous auctions, but can only place pending orders.
2. Continuous bidding.
After the call auction ends, the continuous auction stage begins. During the continuous auction period, investors can submit buy and sell orders at any time, and the system will match transactions according to the principle of ** priority and time priority. If the investor's declaration does not match the market, or if the declared quantity exceeds the market supply or demand, the declaration is invalid.
3. Formation mechanism.
*The formation mechanism of the opening price is mainly determined according to the principle of call auction and continuous auction. Specifically, if there is no deal during the call auction, the opening price will be the first deal** in the continuous auctionIf there is a deal during the call auction, the opening price will be used as the deal**. During continuous auctions, the market is constantly changing, and so are the deals.
4. Influencing factors.
*The determination of the opening price is affected by a variety of factors. It mainly includes the following aspects:
1.Supply and demand: Supply and demand are the most basic factors that affect ***. If the demand for a certain commodity in the market is greater than the supply, it will rise;If the supply is greater than the demand, it will fall.
2.Policy factors: Policy factors also have an important impact on ***. For example, the adjustment of the policy may lead to changes in the supply and demand pattern of the market, which will affect the market
3.Economic data: Economic data also has a certain impact on ***. For example, changes in economic indicators such as inflation rates, interest rates, exchange rates, etc., may affect the expectations of market participants, which can affect ***
4.Emergencies: Emergencies refer to events that occur suddenly, such as natural disasters, political events, etc. These events can have a shock to the market, leading to volatility.
In conclusion, the determination of the opening price is the result of a combination of factors. Investors need to pay close attention to changes in market dynamics and related factors in order to make the right decisions when trading.
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