Either-Way Market


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.

  1. LIBOR

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  2. Liquid Market

    A market with many bid and ask offers, low spreads and low volatility. ...
  3. Bid

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  4. Forex - FX

    The market in which currencies are traded. The forex market is ...
  5. Eurodollar

    U.S.-dollar denominated deposits at foreign banks or foreign ...
  6. Euro Interbank Offer Rate - EURIBOR

    The rates offered to prime banks on euro interbank term deposits. ...
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  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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