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Definition

When the share market stops trading at the end of each trading day. The share price at the close is what is used in all charts and technical analysis and is known as "the close" or "the closing price". This price is established through the JSE's closing auction system. The JSE describes the auction - "The process is fairly simple. During the auction process, no matching of orders is done. If you submit a buy order at a price that there is a sell order for, the order does not match until the close of the auction period. All orders can be cancelled or amended during the auction process. At the end of each auction, the system determines at what price most shares will trade. The trade is then executed and that is the opening or closing price."

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