Orderly Market

AAA

DEFINITION of 'Orderly Market'

Any market in which the supply and demand are reasonably equal. The orderly market would thus be said to be in a state of equilibrium.

This can also refer to a site of exchange for goods, services or financial securities that is run in a fair, reliable, secure, accurate and efficient way. Orderly markets contribute to economic growth.

INVESTOPEDIA EXPLAINS 'Orderly Market'

Orderly markets usually have stable and competitive prices, reflecting the true value of the good or service. For securities markets, a stock exchange's market surveillance team is the entity in charge of ensuring an orderly market. In a disorderly market, there may be market manipulation, insider trading and other violations of regulations. If a market is disorderly, investors may lack the confidence to participate. The Federal Reserve also attempts to promote orderly market functioning by ensuring market liquidity.

RELATED TERMS
  1. Price Discovery

    A method of determining the price for a specific commodity or ...
  2. Equilibrium

    The state in which market supply and demand balance each other ...
  3. Demand

    An economic principle that describes a consumer's desire and ...
  4. Write Out

    A dual trade transaction enacted by a specialist in an individual ...
  5. Supply

    A fundamental economic concept that describes the total amount ...
  6. Market Value

    The price an asset would fetch in the marketplace. Market value ...
RELATED FAQS
  1. Will technology ever disrupt the role of the custodian bank?

    Custodian banks, along with other financial institutions that hold custodian accounts, are likely to be disrupted but not ... Read Full Answer >>
  2. What is the average range for the price-to-earnings ratio in the electronics sector?

    Investors purchase shares of company stock and other traded securities through capital markets in either primary or secondary ... Read Full Answer >>
  3. What are the benefits and shortfalls of the Herfindahl-Hirschman Index?

    Equity and debt are the two sources of financing accessible in capital markets. The term "capital structure" refers to the ... Read Full Answer >>
  4. What is the difference between open interest and volume?

    In the options market, two measurements describe the liquidity and activity of option contracts. Volume is the amount of ... Read Full Answer >>
  5. What is the difference between notional value and market value?

    The notional value and market value describe the amount of a security. The notional value is the total value of options, ... Read Full Answer >>
  6. What are the most effective ways to reduce moral hazard?

    There are a number of ways to reduce moral hazard, including the offering of incentives, policies to prevent immoral behavior ... Read Full Answer >>
Related Articles
  1. Economics

    Economics Basics

    Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more!
  2. Investing Basics

    What Are A Stock's "Fundamentals"?

    The investing world loves to talk about fundamentals, but do you know what it means?
  3. Fundamental Analysis

    Institutional Investors And Fundamentals: What's The Link?

    Big-money sponsorship might make a company look good, but it's not always a reliable gauge of stock quality.
  4. Investing Basics

    7 Investing Mistakes And How To Avoid Them

    No investor is flawless. Here are some common investing fallacies and a step-by-step guide on how to avoid them.
  5. Investing

    Tips For Investors In Volatile Markets

    Find out what to look out for when trading during market instability.
  6. Active Trading

    Fundamental Analysis For Traders

    Find out how this method can be applied strategically to increase profit.
  7. Investing

    Too Late To Invest In EM?

    Investors have flocked to developing markets amid continued low U.S. interest rates & hopes of further economic stimulus from emerging world central banks.
  8. Investing

    How Nasdaq Makes Money

    NASDAQ provides a marketplace which offers money-making opportunities to investors. Investopedia explains how NASDAQ makes money.
  9. Investing

    How The NYSE Makes Money

    We examine how the New York Stock Exchange, the leading US stock exchange, makes money.
  10. Investing Basics

    What is a Financial Market?

    “Financial market” is a broad term used to describe any forum where buyers and sellers meet to trade assets.

You May Also Like

Hot Definitions
  1. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  2. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  3. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  4. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  5. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  6. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
Trading Center