Call Auction
A matching mechanism that collects orders over a window and executes them all at a single price that maximises traded quantity.
Formula
Equilibrium Price = the price at which the largest quantity can be matched; ties are broken by minimum unmatched quantity
Unit
₹
In depth
A call auction concentrates dispersed interest into one moment and one price, which is why exchanges use it where continuous trading would be disorderly: the market open, the reopening after a halt, and illiquid securities. Everyone who trades in the auction gets the same price regardless of what they bid, so there is no advantage in being marginally faster. This is the opposite of continuous matching, where each trade prints at its own price and speed matters enormously. The equilibrium price can sit far from the previous close if overnight information warrants it.
Worked example
In the auction, 40,000 shares can trade at ₹431, 62,000 at ₹436 and 51,000 at ₹440. The auction clears at ₹436 because it maximises matched quantity, and every participant transacts at that single price.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Call Auction” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.