What is the closing price if there were no trades in continuous trading but there is an existing reference price?

What is the closing price if there were no trades in continuous trading but there is an existing reference price?

• A. Existing reference price
• B. Last price
• C. Opening price
• D. Maximum price

Answer: (A)

When there are no trades during continuous trading, there is no last traded price to determine the close. In that situation, the closing price is set to the existing reference price. This reference price, established beforehand, provides a stable value that reflects the most relevant information from prior activity and avoids an undefined close. The last price can’t be used because it requires a trade that didn’t occur. The opening price refers to the first trade of the session, not the end of it, and the maximum price is simply the highest intraday price, not the closing value.

When there are no trades during continuous trading, there is no last traded price to determine the close. In that situation, the closing price is set to the existing reference price. This reference price, established beforehand, provides a stable value that reflects the most relevant information from prior activity and avoids an undefined close. The last price can’t be used because it requires a trade that didn’t occur. The opening price refers to the first trade of the session, not the end of it, and the maximum price is simply the highest intraday price, not the closing value.