Definition ∞ Continuous auctions are market mechanisms where assets are traded without fixed closing times, allowing bids and offers to be matched constantly. This method facilitates ongoing price discovery and immediate transaction execution. Participants can place orders at any moment, and trades occur whenever matching conditions are met. It contrasts with batch auctions that have specific opening and closing phases.
Context ∞ Continuous auctions are a standard feature in many cryptocurrency exchanges, supporting the 24/7 nature of digital asset trading. A key discussion point involves their efficiency in highly liquid markets versus potential for market manipulation in thinly traded assets. Future developments may include hybrid models that combine aspects of continuous and periodic auctions to optimize market fairness and efficiency.
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