DEFINITION of 'One-Sided Market'

When the market for a security only shows either one bid or one ask.

BREAKING DOWN 'One-Sided Market'

Market makers are required to maintain a two-sided market where both a bid and an ask price are shown to investors.

RELATED TERMS
  1. Bid Price

    The price a buyer is willing to pay for a security. This is one ...
  2. Two-Sided Market

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  3. Best Bid

    The highest quoted bid for a particular trading instrument among ...
  4. Ask Size

    The amount of a security that a market maker is offering to sell ...
  5. Bid Tick

    An indication of whether the latest bid price is higher, lower ...
  6. Bid Size

    The number of shares being offered for purchase at a specified ...
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RELATED FAQS
  1. Why are the bid prices of T-bills higher than the ask prices? Aren't bids supposed ...

    Yes, you are correct that the ask price of a security should typically be higher than the bid price. This is because people ... Read Answer >>
  2. What do the bid and ask prices represent on a stock quote?

    Learn what the bid and ask prices mean in a stock quote. Find out what represents supply and demand in the stock market and ... Read Answer >>
  3. What do the numbers that follow the bid and ask numbers in stock quotes represent? ...

    When looking at stock quotes, there are numbers following the bid and ask prices for a particular stock. These numbers usually ... Read Answer >>
  4. What is the difference between a quote driven market and an order driven one?

    The difference between these two market systems lies in what is displayed in the market in terms of orders and bid and ask ... Read Answer >>
  5. How do day traders capture profits from the difference between bid and ask prices?

    Discover how day traders capture profits from the difference between bid and ask spreads. These spreads blow out during volatile ... Read Answer >>
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