Investors can trade TFEX’s products by placing orders via their brokers which are TFEX members (Members). Only Members are allowed to access the exchange trading system. There are two trading methods.
1. Electronic Trading Transaction
Electronic Trading Transaction is an automated matching order according to a price-then-time priority.
After investors send buy or sell orders to the trading system via Members’ facility, the trading system queues the orders according to the price, with the best price taking precedence first. Then the orders in each price group are arranged according to the time priority before being queued and automatically matched by the trading system.
2. Block Trading Transaction
Block Trading Transaction is a privately negotiated order apart from the public auction market at or above a certain minimum volume set for each type of contract. Members may deal directly with each other, either on behalf of their clients or for themselves. After concluding negotiations, members must record details of the block trade transaction to the trading system. The block trade transaction can be done by the same member, called One-firm Transaction, or by two members, called Two-firm Transaction.