During this phase, trading is bilateral, continuous and simultaneous. Each transaction is executed at the price determined by the intersection of a bid and ask order. There is no price fluctuation limit during the continuous trading phase.

The order book during the continuous trading phase is a list of all the orders received that have not yet been matched to their counterparts and have not yet resulted in a transaction. The order queue is managed according to price priority first and time priority second.

Each new order is examined in turn, against the orders in the book, in order to match it to suitable counterparts. A new order may be matched to one or more orders in the book. The match between two orders creates a transaction, at a price identical to the price limit of the order in the book. If the new order cannot be matched, in full or in part, with an order or orders in the book, the order or the unexecuted part of the order is recorded in the order book. If the matching of the new order with an order in the book results in a remainder left over from the order in the book, the unexecuted part remains in the order book and keeps the priority level of the original order. Orders can be changed or cancelled as long as they have not been fully matched with a counterpart order or orders.

A change in the quantity of an order as a result of partial execution does not cause a change in the execution priority of the remaining part. A change in the price of the order causes it to be replaced with a new amended order, whose priority is determined by the price limit of the amended order and the time of the change.

Minimum sizes of orders in the continuous trading phase, in equities and convertible bonds are:

• TA-25 shares – shares at a monetary value of NIS 5,000.
• TA-75 and Yeter shares – securities at a monetary value of NIS 2,000.
• Warrants – an amount of warrants equal to the minimum amount of shares in an order of the underlying asset, divided by the exercise ratio.
• T-bills – par value 100,000 (the T-bill market is the only market in which the minimum size is noted in par value rather than in monetary value).
• Bonds – bonds at a monetary value of NIS 30,000.

During the continuous trading phase, orders at a lower monetary value that were transferred from the opening phase are also traded. At the end of the continuous trading phase, unexecuted orders are transferred to the closing price phase.