BODIVA Order Book
The order book is the central mechanism through which BODIVA matches buy and sell orders for listed securities. Understanding how the order book works is essential for investors seeking to execute trades efficiently in Angola’s equity market, which recorded 10,328 transactions across 5 listed equities in 2024.
How the Order Book Works
BODIVA operates an electronic order-driven market where buy (bid) and sell (ask) orders are submitted by CMC-licensed brokers and matched according to price-time priority:
| Principle | Description |
|---|---|
| Price Priority | The highest bid and lowest ask receive priority for matching |
| Time Priority | Among orders at the same price, the earliest order is matched first |
| Continuous Trading | During market hours, orders are matched continuously as they arrive |
| Auction Sessions | Opening and closing auctions determine benchmark prices |
Order Book Structure
The order book displays the following information for each listed security:
Bid Side (Buy Orders)
- Price levels at which buyers are willing to purchase
- Quantity (number of shares) at each price level
- Number of individual orders at each price level
Ask Side (Sell Orders)
- Price levels at which sellers are willing to sell
- Quantity at each price level
- Number of individual orders at each price level
Spread: The difference between the best bid (highest buy price) and best ask (lowest sell price) indicates the current liquidity of the security. Narrower spreads indicate better liquidity.
Order Types
BODIVA supports the following order types:
- Market Order: Executes immediately at the best available price
- Limit Order: Executes only at the specified price or better
- Day Order: Valid only for the current trading session
- Good-Till-Cancelled (GTC): Remains active until executed or manually cancelled
Price Variation Limits
BODIVA imposes daily price variation limits to prevent extreme volatility:
- Securities cannot move more than a prescribed percentage from the previous session’s reference price in a single trading day
- If a price limit is reached, trading may be temporarily halted
- The reference price is recalculated after each trading session
Settlement
Matched trades settle on a T+3 basis (trade date plus three business days) through CEVAMA, BODIVA’s central securities depository. Settlement involves:
- Delivery of securities from seller’s CEVAMA account to buyer’s account
- Payment from buyer’s bank to seller’s bank through the banking system
Practical Implications for Investors
Given BODIVA’s current stage of development with limited liquidity, investors should:
- Use limit orders rather than market orders to control execution prices
- Be aware that large orders may move the market due to thin order books
- Monitor the bid-ask spread as an indicator of liquidity conditions
- Consider splitting large orders across multiple trading sessions
For current market statistics, see the daily statistics page. For trading processes, see how to trade on BODIVA.