tight market
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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.