Which statement correctly describes closing-phase visibility for orders?

• A. They are visible in the order book immediately
• B. They are not visible in the order book until the start of the closing auction
• C. They are visible only during pre-opening
• D. They are never visible

Answer: (B)

During the closing process, orders intended for the close are kept in a dedicated closing book and are not shown in the regular order book until the closing auction begins. This delay protects the integrity of closing price discovery by preventing early visibility from influencing trading behavior or signaling interest. When the closing auction starts, those closing orders become visible and participate in determining the final price.

If they were visible immediately, or only during pre-opening, or never visible, the closing price discovery would be disrupted and could lead to unfair advantages or distorted price formation.