Crossed Market

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Dictionary Says

Definition of 'Crossed Market'

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

Investopedia explains '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.

Related Definitions

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    Ask

    The price a seller is willing to accept for a security, also known as the offer price. Along with the price, the ask quote will generally also stipulate the amount of the security ...
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  • Bid

    1. An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at which the buyer is willing to purchase the security and the quantity to ...
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  • Bid-Ask Spread

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    • Locked Market

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    • Nasdaq

      A computerized system that facilitates trading and provides price quotations on more than 5,000 of the more actively traded over the counter stocks. Created in 1971, the Nasdaq was the ...
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