One-Sided Market

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. Inside Market

    The spread between the highest bid price and lowest ask price ...
  2. Best Ask

    The lowest quoted offer price among all those offered by competing ...
  3. Bid Whacker

    A slang term for an investor who sells shares at or below the ...
  4. Firm Quote

    A price quote on a security, made by a dealer or market maker, ...
  5. Wide Open

    The gap between a stock's bid price and the ask price at the ...
  6. Bid And Asked

    A two-way price quotation that indicates the best price at which ...
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RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. How do I use a limit order in conjunction with a bid-ask spread?

    Understand the concept of the bid-ask spread as it applies to trading and how it impacts the pricing of limit orders used ... Read Answer >>
  4. What are the determinants of a stock's bid-ask spread?

    Stock exchanges are set up to assist brokers and other specialists in coordinating bid and ask prices. The bid price is the ... Read Answer >>
  5. When is a buy limit order executed?

    Understand how buy limit orders work, and factors such as the bid-ask spread and market volatility that traders must consider ... Read Answer >>
  6. Is an earnings surprise priced into the opening value by market makers or does the ...

    An earnings surprise is an event where the earnings of a company are greater or lower than the predictions put forth by analysts, ... Read Answer >>
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