Trading Mechanisms, Order Handling, and Market Operations
This domain tests the mechanics of order entry and execution on Iranian exchanges: the trading session, the order types available, the constraints imposed by price bands, and the conduct expected when handling client orders.
Session structure
Trading is electronic and order-driven. A pre-opening phase collects orders and publishes an indicative price, an opening auction determines the opening price, continuous trading then runs on price-time priority, and a closing process ends the session. Symbols are halted (توقف) for material disclosure, exceptional price movement or corporate actions.
Order types and constraints
Limit orders, market orders constrained by the daily fluctuation range (دامنه نوسان), and best-limit orders are the core tools. Each symbol has a minimum tick and a daily band set by rule. Where demand or supply exceeds the band, a queue (صف) forms at the limit price and is served first-in, first-out. Block trades (بلوکی) and negotiated trades (توافقی) have minimum size thresholds and their own price rules.
Order handling duties
Best execution, prompt entry, client priority over the firm's principal trades, no front-running, fair allocation of partial fills, complete recording and audit trail, and confidentiality of client orders.
Worked example
A client places a limit buy for 10,000 shares at 5,000 rials. The book shows 4,000 shares offered at 4,900 and 6,000 at 4,950. The fill is 4,000 × 4,900 = 19.6m plus 6,000 × 4,950 = 29.7m, total 49.3m rials, average 4,930. The client receives 700,000 rials of price improvement versus the limit.
Traps that cost marks
Assuming market orders ignore the daily price band; allocating a favourable fill to the firm's own book; treating negotiated trades as exempt from price rules; entering a client order after the firm has traded the same stock for itself.