One-Way Market

AAA

DEFINITION of 'One-Way Market'

1) A market which only can quote a firm price on either the bid or the ask side. This can be caused by temporary market inefficiencies or by regulatory controls, as can be found in some foreign countries. A one-way market also can be created when there are only buyers, or only sellers, interested in a particular asset or security at a specific point in time.

2) A slang term to describe a market that is moving strongly in one direction with little resistance.

INVESTOPEDIA EXPLAINS 'One-Way Market'

1) Certain countries have created one-way markets for themselves in respect to foreign investment - in Korea, for instance, investors typically can purchase only initial public offerings of companies, and no investing is allowed on the secondary markets once that window has passed.

2) A good example of a one-way market would be the ending stage of the technology-driven bull market of the late 1990s. In January of 2000, nearly every stock was rising every day, regardless of the fundamentals at the time.

RELATED TERMS
  1. Depth of Market (DOM)

    A measure of the number of open buy and sell orders for a security ...
  2. Ask

    The price a seller is willing to accept for a security, also ...
  3. Foreign Direct Investment - FDI

    An investment made by a company or entity based in one country, ...
  4. Bid

    1. An offer made by an investor, a trader or a dealer to buy ...
  5. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
  6. Repatriation

    The process of converting a foreign currency into the currency ...
Related Articles
  1.  These are the two main types of trades that investors will encounter: principal and agent transactions.
    Investing Basics

    Principal Trading and Agency Trading

  2. Investing Basics

    The Basics Of The Bid-Ask Spread

  3. Trading Strategies

    What do the numbers that follow the ...

  4. In 2014, stock markets traded at record levels and the US IPO market enjoyed activity not seen since the 2000 tech bubble. Here is a snapshot of some of the year’s most successful IPOs.
    Investing News

    5 IPOs That Broke The Markets In 2014

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center