locked market

(redirected from Locked Markets)

Locked market

A market is locked if the bid price equals the ask price. This can occur, for example, if the market is brokered and one side pays brokerage only, in over-the-counter trading the initiator of the transactions. Highly competitive market environment with inside bid and offering at the same price. Often occurs when an OTC dealer has not updated the market.

Locked Market

A situation in which a security has no bid-ask spread. That is, the bid and the ask in a locked market are identical. A locked market is both a temporary phenomenon and relatively uncommon. When it occurs, it usually happens with NASDAQ securities in trading before the open.

locked market

A somewhat unusual occurrence in which the bid price and ask price for a security are equal.
References in periodicals archive ?
This was, no doubt, a laudable and timely intervention project in an area that had become notorious for intractable human and vehicular gridlock, which is compounded by the many road intersections and an avalanche of open and locked markets - both structured and spontaneous, as well as unscrupulous elements such as pickpockets having a free day both at daytime and nightfall.
constructed, locked markets on the NBBO were prohibited.
with sell orders, it is difficult to view the ban on locked markets as
special interest groups that include HFTs, the ban on locked markets is
Locked markets cannot happen when all trades occur on
execution of matched orders on two markets (locked markets) facilitates
investor facing the locked market. As such, locked markets result in the
The rule against locked markets is inconsistent with the rule
bid and the offer sides of locked markets. Disallowing trading when bids
with the SEC's rule against locked markets. (36) We respectfully