Bitget Call Auction: Overview, Benefits and Guidelines

If you're familiar with financial markets, you've likely heard of ‘call auction’ before. It refers to a type of trading where buy and sell orders are submitted and matched at predetermined time intervals, resulting in a single opening price. In the crypto world, call auction lets traders submit orders for a new token based on their expected price before a new token is officially listed. These orders are then ranked and matched based on price and time priority, allowing the system to determine an opening price for the token.

Bitget's recently launched Call Auction aims to reduce the market volatility caused by low liquidity before a new token listing. This initiative reaffirms Bitget's user-centric philosophy—providing tools that help our users thrive in the fast-paced crypto market.

Key Benefits of Call Auction

Fair Trading for All: A call auction ensures all investors trade at the same fair price, creating a fairer environment by preventing any single investor from dominating the market.

Enhanced Liquidity: By bunching many buy and sell orders together, liquidity is significantly increased and this can cut transaction costs for investors.

Reduced Price Volatility: Call auctions are great for stabilizing prices when the market opens. Often, investors are wary of sudden price swings, but call auctions help boost confidence by offering more predictable pricing at the token’s launch.

Reflective Market Sentiment: The opening price of a token reflects the collective view of all investors involved. With call auctions, the market integrates all available information, resulting in a smarter opening price that helps investors make better decisions.

How Does Call Auction Work at Bitget?

Bitget's Call Auction process is straightforward and involves two main components: the pricing mechanism and the trading rules. The system prioritizes all orders based on price and submission time. Here are the key factors involved in determining the opening price:

1. Maximizing Matchable Volume: The opening price is set where the highest volume of orders can be matched.

2. Order Execution: Buy orders with prices higher than the opening price, and sell orders with prices lower than the opening price can be fully executed.

3. Tie-breaking: If multiple prices yield the same maximum matchable volume, the system will choose the price closest to the reference provided by market makers. If no reference price is available, the lowest matchable price is selected.

4. For instance, imagine a token about to be listed. Users place the following orders:

● User A places four buy orders at $1.00 USDT.

● User B places four buy orders at $0.99 USDT.

● User C places eight sell orders at $1.01 USDT.

● User D places four sell orders at $1.00 USDT.

With this setup, the system sets the opening price at $1.00 USDT, which results in the maximum possible matchable volume. In simpler terms, imagine a marketplace where everyone gathers to trade their items. The system sets the trading price to ensure that most participants get what they want.

Call Auction Phases

Call auctions at Bitget unfold in three distinct phases, each with its own timeframe. It's crucial for users to be aware of these phases and adjust their bidding strategies accordingly:

Auction Phase 1:

Typically, it lasts for a few hours, though specific timings vary depending on the token. Users should monitor announcements for exact schedules. At this stage:

● Only Good-til-Canceled (GTC) limit orders are allowed, with no support for other order types.

● Order cancellation is supported;

● Order modification is not supported;

● Orders are placed freely, but no trades are executed at this stage.

Auction Phase 2:

This phase typically lasts a few minutes, with exact timings depending on the token. Users should monitor announcements for exact schedules. At this stage:

● Only Good-til-Canceled (GTC) limit orders are allowed, with no support for other order types.

● Order cancellation is not supported;

● Order modification is not supported;

● Users can continue to place orders, but no trades are executed at this stage.

Phase 3: Matching Phase

This phase typically lasts only a few seconds, with exact timings depending on the token. Users should monitor announcements for exact schedules. At this stage:

● GTC orders are not supported;

● Order cancellation is not supported;

● Order modification is not supported;

● The system finalizes the opening price based on pricing rules.

At this stage, all orders that can be matched will be executed and the transaction prices are determined according to the above pricing rules and the final opening price. The final settlement between the buyer and the seller is:

	Pay	Receive
Buyer	Opening price x Buy quantity	Buy quantity - Trading fee
Seller	Sell ​​quantity	Sell quantity x Opening price - Trading fee

It should be noted that trading fees for orders filled in call auctions will be charged according to taker fee rates

The remaining unfilled orders are automatically carried over to the regular trading session, that is, entered into the order book.

Handling Call Auction Failures

Bitget enforces certain criteria to ensure fair pricing during call auctions. If these conditions aren't met, the call auction may fail.

Here are the main reasons for call auction failure:

● Excessive Bid-Ask Spread: If the highest buy price and the lowest sell price have a significant gap, the call auction may fail.

● Low Matchable Volume: If the volume of matchable orders is too low, the call auction may also fail. Minimum matchable volumes are announced beforehand.

When a call auction fails, there are two possible outcomes:

1. The token may be delisted.

2. The token remains listed, with the opening price set according to market maker suggestions.

We will include these details in the announcement. In either case, all call auction orders will be canceled, ensuring users do not suffer any unintended losses.

A Smarter Way to Trade

At Bitget, we're committed to constant innovation and enhancing our platform's features and resources. We strive to equip traders with the latest market intelligence tools they need to stay ahead of the game, whether they're just starting out or are experienced investors. Our mission is simple: to help you trade with greater confidence and success!