Continuous Trading
A market structure where orders are matched and executed throughout the trading session as they arrive, rather than at fixed auction times.
What is Continuous Trading?
Continuous trading is the dominant structure for equities and derivatives on major global exchanges, where an electronic order book accepts, matches, and executes buy and sell orders on an ongoing basis throughout the trading session. As each new order arrives, the matching engine immediately checks whether it can be paired with an existing opposite-side order at a compatible price. If a match is found, the trade executes instantly; if not, the order joins the queue. This contrasts with periodic call auctions, which aggregate all orders over a period and clear them simultaneously at a single price—a method used for the opening and closing of most equity markets even when continuous trading operates intraday. Continuous trading provides real-time price discovery and immediate execution but can be more susceptible to momentary liquidity gaps and volatility compared to auctions.
Example
During continuous trading hours on the NYSE (9:30 AM–4:00 PM ET), an investor's limit order to buy 200 shares of Tesla at $250 immediately enters the order book. When a seller posts an ask of $250 or below, the exchange's matching engine pairs the orders and executes the trade within microseconds—without waiting for a scheduled auction.
Source: NYSE — Market Structure