What does Itayose mean?
A Japanese term for an equity auction trading technique to set prices. All orders received before the market opens are given an equal priority when the market opens. This allows all the orders to be matched.
Futures Knowledge Explains Itayose
At the Tokyo Stock Exchange, stock prices are determined by two methods: Itayose method (call auction) and Zaraba method (continuous trading auction). Itayose method helps determine the opening and closing prices. It determines single price at which sell orders and buy orders match. Itayose method is also used to determine the initial price after resumption of trading after a trading halt or when a special quote or sequential trade quote is indicated. Zaraba method is used throughout trading session.