Locked Market

Filed Under » ,
Dictionary Says

Definition of 'Locked Market'

A market in which a stock's bid and ask prices are identical. In a locked market, there is no bid-ask spread; normally, there is a difference between the highest price a buyer will pay for a security and the lowest price a seller will accept. Locked markets are unusual and typically short-lived.
Investopedia Says

Investopedia explains 'Locked Market'

In a locked market, it may be necessary for exchanges to halt automatic order execution and implement manual order execution because executing orders in a locked market is prohibited. Securities and Exchange Commission regulations require national exchanges to not even display quotes that indicate a locked market. The SEC considers a locked market to violate fair and orderly market rules, which requires that buyers and sellers receive the next and best available prices when trading securities.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Ask

    The price a ...

  2. Bid

    1. An offer made ...

  3. Bid-Ask Spread

    The amount by ...

  4. Crossed Market

    A situation ...

  5. Nasdaq

    A computerized ...

  6. Spread

    1. The ...

  7. Daily Trading Limit

    The maximum gain ...

  8. Insider

    A director or ...

  9. Smart Money

    Cash invested or ...

  10. Zombie Titles

    A right to ...

Articles Of Interest

  1. The Basics Of The Bid-Ask Spread

    Understanding the real forces that move stock prices is part of being a good trader.

  2. The Dirt On Delisted Stocks

    Listed securities are "the cream of the crop". Find out how a firm can lose that status and why you should be wary.

  3. Earn More Profit With Less Trading

    Avoiding overtrading can save your money and your sanity. Find out how to slow your turnover and build your profits.

  4. Why are the bid prices of T-bills higher than the ask prices?

  5. What do "BxA" numbers mean?

  6. Active Investment Management Misses The Mark

    Active investment management offers little advantage in the secondary capital markets.

  7. Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.

  8. SEC Filings: Forms You Need To Know

    The forms companies are required to file provide a clear view of their histories and progress.

  9. The Currency Market Information Edge

    Unique features of the forex market may allow larger players to get a jump on smaller ones.

  10. The Flow Of Company Information

    Learn how to gather all the pieces before you start to put together your puzzle.
Sponsored links

comments powered by Disqus
Hot Definitions

  1. Love Money

  2. Shark Watcher

  3. Judo Business Strategy

  4. Dogs Of The Dow

  5. Chinese Hedge

  6. X-Mark Signature

Recommended
Loading, please wait...
See More »
Trading Center