What is the role of closing auctions in the cryptocurrency market?

1 answers

• Nov 28, 2021 · 3 years ago
  Closing auctions in the cryptocurrency market are like the grand finale of a fireworks show. They bring together buyers and sellers to determine the final price of cryptocurrencies for the day. During closing auctions, market participants submit their orders, and the exchange matches them based on price and quantity. The closing price is then determined by the equilibrium of supply and demand. This closing price becomes the reference point for the next trading day. Closing auctions help provide price discovery and ensure a fair market by allowing all participants to trade at the same price. They also contribute to market liquidity by allowing large trades to be executed at the closing price. So, if you want to make a splash in the cryptocurrency market, keep an eye on the closing auctions!
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