Price Continuity

Dictionary Says

Definition of 'Price Continuity'

A characteristic of a liquid market where the price movements between transactions are relatively small. Each trade results in minimal price changes, as if the proceeding price continued through to the next transaction.
Investopedia Says

Investopedia explains 'Price Continuity'

Price continuity represents the depth in a market, indicating a large number of buyers and sellers for a security. Each buyer and seller will have a bid and an ask, which represent the prices at which traders will buy or sell a stock. The bid-ask spread usually tightens with a large number of buyers and sellers, so the range in which a security will trade narrows. A narrow trading range will produce a high degree of price continuity.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Bid-Ask Spread

    The amount by ...
  2. Bid

    1. An offer made ...
  3. Ask

    The price a ...
  4. Liquid Market

    A market with ...
  5. Market Depth

    The market's ...
  6. Depth

    The ability of a ...
  7. Slow Market

    1. A market that ...
  8. Sector

    1. An area of ...
  9. Cyclical Industry

    A type of an ...
  10. Boom

    A period of time ...

Articles Of Interest

  1. The Utility Of Trendlines

    Trendlines give an investor a good idea of the direction an investment might move in. Discover how to make them work for your portfolio.
  2. Forces That Move Stock Prices

    You can't predict exactly how stocks will behave, but knowing what affects prices will put you ahead of the pack.
  3. The Basics Of The Bid-Ask Spread

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

    We explain the meaning and use of that reel of symbols whizzing across your TV or computer screen.
  5. Whisper Numbers: Should You Listen?

    These unofficial forecasts hold the potential for insider insight - and investment risk.
  6. Translating Ticker Talk

    Stock tickers can say a lot about a company in just a few letters. Find out how to read them.
  7. Should You Be Afraid Of Dark Pool Liquidity?

    Don't fear the deep end. Dark pool liquidity can help drive down stock cost for everyday investors.
  8. Turnaround Stocks: U-Turn To High Returns

    Find out which catalysts can turn struggling stocks around to create a tidy profit.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center