Batch Auction

A batch auction is a type of auction where all trades are executed at specific intervals rather than continuously throughout the day. In the context of cryptocurrency, a batch auction occurs when all buy and sell orders for a particular trading pair are matched and executed at set times during the day.

For example, a cryptocurrency exchange may conduct batch auctions every hour, where all orders that have been placed since the last auction are matched and executed at the same time. This can help reduce price volatility and ensure that all market participants have a fair chance of getting their orders filled at the same price.

Batch auctions are often used in cryptocurrency trading to help increase liquidity, reduce the impact of high-frequency trading, and provide a more orderly market for participants. By matching all orders at specific intervals, batch auctions can help bring more efficiency and transparency to the trading process.