How auctions work
Auctions are routine events on CoinJar Exchange that allow for better price matching and easier trading of large volumes.
During regular trading, it can be difficult for high volume users to buy or sell large amounts, as their order can make up a large portion of the total orders. This often requires them to accept a less-than-desirable price to have their order filled successfully. An auction allows ten minutes for users to place and review large orders, giving time to settle on a reasonable trade price. At the closing of the auction period, this leads to more successful matches of higher volume trades without disrupting the Order Book.
Auctions occur three times per day for ten minutes, during which order fills are paused. During the final two minutes of each auction, orders can no longer be cancelled. Additional orders can be submitted during this two minute period, provided they are less aggressive than the current best bid or ask price.
Auctions occur each day at 09:50 AEST, 17:50 AEST and 01:50 AEST. Each auction lasts a total of ten minutes.
Each auction has three phases, 'Auction', 'No Cancel' and 'Closing', during which different trading rules apply. The market status symbol in the Trading section will change according to the current phase and display a countdown. Outside of auction times, Continuous trading resumes.
Auction (0:00 - 8:00)
All existing orders on the Order Book participate in auctions. During auctions, matches between trades are halted, meaning the best bid and ask prices can overlap.
No Cancel (8:00 - 9:55)
Orders can continue to be made to the market, however existing orders cannot be cancelled. Additionally, orders are only accepted if they are less aggressive than the current best bid or ask.
Closing (9:55 - 10:00)
The auction is settled and eligible orders matched. No new orders can be placed during the auction close.
Settlement occurs during the Closing phase. A best price is found for all eligible matching orders on the market, then these orders are matched. This price is selected to maximise volume; no orders can receive a worse price if matched during settlement. If every order cannot be matched at this price, orders are matched according to when they were submitted.