locked market

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 ?
As noted above, the SEC considers this a locked market and
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
Trade through, locked market and crossed market prohibitions do not apply to trade and quote activity in either session.
A locked market occurs when the bid price equals the sell price in the same security, and a crossed market occurs when the bid price is greater than the sell price of a security.