DEFINITION of 'Frictionless Market'
A theoretical trading environment where all costs and restraints associated with transactions are non-existent.
BREAKING DOWN 'Frictionless Market'
The advent of discount brokers and their low commissions has brought the market closer to a frictionless state. But, in reality there are no truly frictionless markets since trading is always associated with certain costs or restraints, such as commissions and tax implications.