Auction process (Two Way) - Trading Glossary

The purpose of an auction is to facilitate trade. Prices constantly auction from low to high and from high to low to fairly distribute the bids and offers presented by the market participants of all timeframes. This is the fairest way to allocate prices and contracts among competing bids and offers; the byproduct of the two-way auction process is market-generated information.

This is a trading glossary term series of blog posts. Check out all the terms we post with the Trading Glossary label.