Either-Way Market

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DEFINITION of 'Either-Way Market'

A condition that exists in the eurodollar interbank deposit market when the bid and offer rates for a particular period are equal. Increasing levels of liquidity can narrow the spread between bid and offer rates until the two values are identical, resulting in an either-way market.

INVESTOPEDIA EXPLAINS 'Either-Way Market'

In an either-way market, banks can go either way between lending or borrowing at the current rate. The convergence of the bid and offer rates creates this indifference point.

RELATED TERMS
  1. LIBOR

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  2. Interbank Rate

    The rate of interest charged on short-term loans made between ...
  3. Eurodollar

    U.S.-dollar denominated deposits at foreign banks or foreign ...
  4. Forex - FX

    The market in which currencies are traded. The forex market is ...
  5. Liquid Market

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  6. Bid

    1. An offer made by an investor, a trader or a dealer to buy ...
RELATED FAQS
  1. What is the difference between LIBOR, LIBID and LIMEAN?

    LIBOR, LIBID and LIMEAN are all reference rates used to benchmark short-term interest rates. The London Interbank Offered ... Read Full Answer >>
  2. Are eurodollars related to the currency called the euro?

    Eurodollars have little to do with the official currency of the European Union, the euro (EUR). In 1999, the euro was implemented ... Read Full Answer >>
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