crossed market

Crossed Market

A situation arising when the bid price of a security exceeds the ask price.

Notes:

Contrary to normal markets where the bid-ask spread is positive, in a cross market the spread is negative. This scenario occurs mainly in volatile and high volume trading.

This abnormal market condition occurs mainly in the Nasdaq exchange on orders entered before the opening bell.

See also: Ask, Bid, Bid-Ask Spread, Locked Market, Nasdaq, Spread

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Crossed market

In the context of general equities, happens when the inside market consists of a highest bid price that is higher than the lowest offer price. See: Overlap the market.

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crossed market

A situation in which one market maker's ask price for a security is lower than another market maker's bid price for the same security.