Fast Market

Dictionary Says

Definition of 'Fast Market'

A condition that will be officially declared by a stock market exchange when the financial markets are experiencing unusually high levels of volatility, combined with unusually heavy trading. Fast markets occur rarely, but when one does occur, brokers are not held to the same constraints as they are during a regular market.
Investopedia Says

Investopedia explains 'Fast Market'

Inexperienced investors are more likely to get burned in a fast market because of the unique problems that arise under extreme trading conditions. One problem is that quotes can become inaccurate when they can't keep up with the pace of trading. Another problem is that brokers may not be able to fill orders when investors want or expect them to, so their securities may be bought and sold at undesirable price levels that don't provide the return the investor anticipated.

Related Definitions

  • Volatility

    1. A statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns ...
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  • Volume

    The number of shares or contracts traded in a security or an entire market during a given period of time. It is simply the amount of shares that trade hands from sellers to buyers as a ...
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  • Beta

    A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that ...
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    • Market

      1. A medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange. The price that individuals pay during the transaction may be ...
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    • Fast Market Rule

      In the United Kingdom, the exchange may determine that a market movement is so sharp that quotes cannot practically be kept current. Under the Fast Market Rule, market makers may be ...
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