auction market

An auction market is a marketplace where buyers and sellers come together to trade a specific item or security, and the price is determined by ongoing bidding and asking activities. Buyers submit bids indicating the maximum they're willing to pay, while sellers set asking prices they’re willing to accept. The price at any given moment is established through the interaction of these bids and asks, with transactions occurring when compatible prices meet. This process ensures that the asset’s value reflects the collective agreement of supply and demand, leading to efficient price discovery. Examples include stock exchanges and commodities markets.