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.

BREAKING DOWN '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.

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