There are mainly five types of stock trading methods.
Each one fits different trading situations and investor needs.
1. Call Auction Trading
This is the most common trading method in the A-share market.
It means:
- During the exchange’s designated time periods
- The system matches buy and sell orders based on:
- Price priority
- Time priority
For example, in Shanghai and Shenzhen:
- 9:15–9:25
- 14:57–15:00
This mechanism helps ensure:
- Market liquidity
- Fair trading
2. Block Trading
Block trading refers to large transactions where:
- Buyer and seller negotiate off-market first
- Then report the deal through the exchange system
It is usually used for:
- Large institutional trades
- Big capital operations
Such trades must still follow:
- Price limit rules
- Usually priced within a certain range around the previous close
3. Agreement Transfer
This means stock ownership is transferred through:
- Private negotiation
- Agreement between both sides
It is often used for:
- Shares of non-listed companies
- Special cases involving listed company shares
This method usually does not go through centralized exchange matching.
4. Market Making Trading
Under a market-making system:
- A market maker continuously provides both buy and sell quotes
- The market maker helps provide liquidity
Investors can trade within the quoted range.
This system is mainly used in:
- The NEEQ / New Third Board
- Other specific markets
5. Closing Price Fixed-Price Trading
After the closing call auction ends, investors can submit orders at:
- The day’s closing price
This usually applies to some registration-based market segments, such as:
- STAR Market
- ChiNext
Typical trading time:
- 15:05–15:30
This is convenient for:
- Adding positions
- Adjusting positions after the market closes
Additional Concepts
Call Auction
Used during:
- Market open
- Market close
Orders are matched once at a specified time.
Continuous Auction
Used during normal trading hours after the market opens.
This is the main mechanism for:
- Real-time intraday trading
Trading Tips
When trading stocks, investors should pay attention to:
Trading hours
In Shanghai and Shenzhen markets:
- 9:30–11:30
- 13:00–15:00
Trading costs
These may include:
- Commission
- Transfer fee
- Stamp duty
Trading rules
Important rules include:
- Daily price limit
- T+1 settlement system
These rules can affect trading decisions.
Risk control
Choose a trading method and strategy based on:
- Your capital size
- Your risk tolerance
Avoid:
- Blindly following the crowd
- Taking positions beyond your ability to bear losses
Summary
Different trading methods serve different investment needs.
Understanding them can help investors respond more flexibly to different market conditions and improve trading efficiency.