Batch Auction
A Batch Auction is a type of auction where all bids are collected during a specific period and then executed at once, rather than individually in real-time. This method allows for a more efficient price discovery process, particularly in markets with high volatility or where it is challenging to match buyers and sellers instantaneously.
Batch auctions are commonly used in financial markets, particularly for securities or cryptocurrency assets, to avoid issues like front-running or price manipulation. By processing all bids at once, batch auctions help ensure that the final prices are fairer and reflect a broader consensus among participants.
Why Batch Auctions Are Beneficial
Batch auctions help mitigate the risks of market manipulation and provide transparency, ensuring that participants get a fair price based on collective demand rather than individual price movements during continuous trading.