Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Zaraba Method

What it is:

Also called the continuous auction method, the Zaraba method is a method of trading securities.

How it works (Example):

In the Zaraba method, which many Japanese exchanges use, the exchange fills orders by matching them with other orders according to the order price and age. Here is an example of how the method works:

Why it Matters:

The Zaraba method helps exchanges ensure that trading is uninterrupted throughout the trading day, primarily on the Tokyo Stock Exchange. However, the Itayose method helps determine the open and closing prices on the Tokyo Stock Exchange.