Dull Market

Definition of 'Dull Market'


A market where there is little activity. A dull market consists of low trading volumes and tight daily trading ranges. There is very little change and action during a dull market. A common phrase when dealing with dull markets is, "never short a dull market." Some believe that the market is storing energy during dull markets and that the market is preparing for a rally.

Investopedia explains 'Dull Market'


A dull market can also be referred to as a flat market or in other words a market at rest. An example would be seeing the market end at or near the same price as when it opened for an extended period of time. During a dull market investors feel that once the market awakens the market is generally set to rise. Any moves after a dull market tend to be larger moves due to the lack of activity. The globalization of the financial industry has reduced the time a market remains dull.



comments powered by Disqus
Hot Definitions
  1. Cash and Carry Transaction

    A type of transaction in the futures market in which the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions are considered arbitrage transactions.
  2. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  3. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  4. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  5. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  6. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
Trading Center