Which statement about the Central Limit Order Book is true?

Which statement about the Central Limit Order Book is true?

• A. Pre-opening lasts from 08:00 CET until the official opening.
• B. Pre-opening begins at 09:00 CET and no opening price is calculated.
• C. Pre-opening lasts from 06:00 CET until the official opening; During pre-opening, a theoretical opening price is continuously calculated.
• D. The opening price is posted after the pre-opening.

Answer: (C)

In this process, the pre-opening phase is where orders accumulate and the system continuously computes a theoretical opening price to guide price discovery before trading starts. The defining point is that this pre-opening runs from 06:00 CET until the official opening, and during that time the theoretical opening price is updated continuously as orders flow in. This continuous calculation helps reveal where supply and demand would meet at the opening, enabling a fair and coordinated price determination. The other statements don’t fit: one shifts the start time to 08:00 CET, another claims no opening price is calculated, and the last only notes that the opening price is posted after pre-opening without capturing the essential ongoing price calculation during pre-opening.

In this process, the pre-opening phase is where orders accumulate and the system continuously computes a theoretical opening price to guide price discovery before trading starts. The defining point is that this pre-opening runs from 06:00 CET until the official opening, and during that time the theoretical opening price is updated continuously as orders flow in. This continuous calculation helps reveal where supply and demand would meet at the opening, enabling a fair and coordinated price determination.

The other statements don’t fit: one shifts the start time to 08:00 CET, another claims no opening price is calculated, and the last only notes that the opening price is posted after pre-opening without capturing the essential ongoing price calculation during pre-opening.