For orders valid at the close, which of the following is true?

For orders valid at the close, which of the following is true?

• A. Entered during pre-opening and continuous trading; visible immediately
• B. Entered during pre-opening and continuous trading; not visible until start of closing auction; remains valid through closing
• C. Entered only during opening; visible
• D. Entered during closing; not visible

Answer: (B)

Orders that are valid at the close are meant to participate in the closing auction. To be eligible for the close, they must be entered during the pre-opening period or during regular continuous trading, so they are ready if the closing auction runs. However, they aren’t shown to the market until the closing auction begins, to avoid influencing the intraday book. Once the closing auction starts, these orders are visible and then remain valid through the close to be included in determining the official closing price. That explains why the statement describing them as entered during pre-opening and continuous trading, not visible until the start of the closing auction, and remaining valid through closing is the best answer.

Orders that are valid at the close are meant to participate in the closing auction. To be eligible for the close, they must be entered during the pre-opening period or during regular continuous trading, so they are ready if the closing auction runs. However, they aren’t shown to the market until the closing auction begins, to avoid influencing the intraday book. Once the closing auction starts, these orders are visible and then remain valid through the close to be included in determining the official closing price. That explains why the statement describing them as entered during pre-opening and continuous trading, not visible until the start of the closing auction, and remaining valid through closing is the best answer.