Similar to the Limit-Only and Post-Only order book modes, the new exchange order book mode known as “Auction Mode” introduces price discovery auctions to the exchange. Customers can place limited orders in auction mode, but no matching will happen. In Auction Mode, only limited orders with the “Allow Taker” flag will be honored.
Limit orders are gathered for price discovery in this mode over a minimum of 10 minutes. The Pro and Exchange programs, the API, and the data feeds will display an indicative price when orders are put on the book; this price may be used to match orders when the auction is launched. Users can predict the open price using this indicative price as a signal.