What distinguishes continuous auction markets?

Continuous auction markets are characterized by the ability to execute trades at any time during the trading day. This feature enables market participants to react to new information or changes in supply and demand instantly, providing a more dynamic trading environment. Unlike some other market structures that may restrict trading to specific times or require trades to occur at a predetermined price, continuous auction markets facilitate a more fluid process where buyers and sellers can transact throughout the entire trading session. This inherent flexibility in execution timing encourages greater participation and liquidity in the market.

The other options do not accurately reflect the defining characteristics of continuous auction markets. For example, limiting trades to the end of the day would inhibit the market's responsiveness and liquidity. Executing trades at a single price is more representative of a call market structure rather than a continuous one. Similarly, the restriction to only limit orders would contrast sharply with the broader capabilities of continuous auction markets, which typically accommodate a variety of order types, including market orders.