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Opening auction

The single-price auction at the start of the regular session that establishes the official opening price by matching accumulated overnight orders.

Orders queue from the pre-market and are matched in one print at 09:30 New York time. The exchange publishes an indicative price and imbalance for several minutes beforehand, which is why the last few minutes before the bell often show a strong directional pull toward the projected open.

The opening print is the official open on charts and the reference for many intraday strategies, including the opening-range. A direct-listing uses a specially supervised version of this auction to set its first trade.

Example: the auction shows a 1.8M share buy imbalance against a $46 indicative. Sellers step in during the final minute, the imbalance shrinks to 300,000 shares, and the open prints $45.10 rather than the $47 the imbalance implied.

Related: closing-auction, reopening-auction, pre-market-session, opening-range, direct-listing

See it drawn

Original diagrams for the ideas on this page. Illustrative, not real market data.

A range beside a trendOne chart swinging between a flat floor and ceiling, another stepping upwards inside a pair of sloping lines.Range-boundresistancesupportprice bounces between two levelsTrendingthe trend channelhigher highs and higher lowsA range has two flat edges; a trend has two sloping ones.
Range versus trend. On the left price keeps bouncing between the same floor and ceiling, which is a range. On the right each high and each low is higher than the last, inside a pair of sloping lines called a channel.

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