Crossed Market


DEFINITION of 'Crossed Market'

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

BREAKING DOWN 'Crossed Market'

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.

  1. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  2. Spread

    1. The difference between the bid and the ask price of a security ...
  3. Ask

    The price a seller is willing to accept for a security, also ...
  4. Locked Market

    A market in which a stock's bid and ask prices are identical. ...
  5. Bid

    1. An offer made by an investor, a trader or a dealer to buy ...
  6. Bid-Ask Spread

    The amount by which the ask price exceeds the bid. This is essentially ...
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