What functionality can be used to avoid crossings in continuous trading?

Study for the Eurex Trader Exam. Prepare with flashcards and multiple choice questions, gaining insights and explanations. Get ready for your certification!

Self match prevention is a functionality designed to avoid the situation where a trader’s orders inadvertently match against each other in continuous trading. This can occur when the same trader submits buy and sell orders for the same financial instrument, resulting in trades that do not provide any liquidity or market execution benefit. By implementing self match prevention, the trading system can identify and block these direct matchings, ensuring that orders from the same account do not execute against each other.

This feature helps maintain a clearer order book and facilitates a more efficient trading environment, where market participants can execute trades more effectively without the confusion or complication arising from self-trading. It ultimately enhances the integrity of the trading venue and aligns with the regulatory expectation for fair market practices.

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