tight market

(redirected from Tight Markets)

Tight market

A market in which volume is high, trading is active and highly competitive, and consequently spreads between bid and ask prices are narrow.

Tight Market

A market or security with high trading volume and a small bid-ask spread. However, an investor can profit in a tight market, especially if he/she trades large numbers of securities. When the bid-ask spread is narrow, an investor may have difficulty making more than a small return for each trade, but sheer numbers can make returns add to a substantial amount.

tight market

A market for securities in which competition is intense and spreads are narrow. In a tight market, dealers must make up in volume what they lose on a narrowing of the spread. Compare deep market, thin market.
References in periodicals archive ?
Tight markets kept consumer inventories down, preventing an inventory overhang that would dampen demand this year.
This type of transaction represents a growing trend in tight markets where it is difficult to find existing product and there are high barriers to entry," said Henkel.
ISE introduced the Second Market to create tight markets and additional liquidity for options classes that have typically experienced lower trading volumes.
Earnings growth is somewhat constrained by rising costs given tight labor markets, high energy-related prices (explosives and diesel fuel), high steel prices, and tight markets for equipment and parts.