What are the allocation methods in continuous trading?

In continuous trading, the price/time priority method is the most commonly used allocation approach. This method prioritizes orders based on the price at which they are submitted, and in cases where multiple orders have the same price, it further sorts them by the time of submission.

When an order is executed in the market, it is matched with the best available price. If several orders are entered at that same best price, the one that was entered first (earliest in time) takes precedence. This ensures a fair and orderly market by preventing any manipulation or unfair advantage that might arise from other allocation methods.

By utilizing price/time priority, market participants can be assured that their orders are treated equitably based on their competitive pricing and submission timing, making this method essential for maintaining investor confidence and a transparent trading environment.