[toast0]

> This point by readams is also true. The closing price of a stock isn't special — it's, as (s)he said, simply the price of the last trade of the day. The fact that some ETFs are marked by the price of market close makes their trading price "special", but that doesn't imply anything particular about the closing price of the asset(s) they're based on

The closing price is special -- there's a special procedure to set the price and determine which orders execute (quite similar to the opening procedure), NYSE has a closing auction, NASDAQ has a closing cross, I'm sure most other exchanges have similar.

If there's no market/limit on close orders for a given stock, then the closing price would be the last trade; presumably the same for a stock which had its trading halted earlier in the day.

[kgwgk]

I think this paper is interesting: https://mrtopstep.com/wp-content/uploads/2016/02/ITG-Trading...

[anonymousDan]

Indeed it is, thanks for posting. It always surprises me how when you get down to the nitty gritty of how financial markets work there is a lot of hidden complexity to the mechanics that could have a significant affect on how you should trade.