DEFINITION of 'Sold-Out Market'
A scenario wherein all or nearly all of the remaining investors have sold their positions. Sold-out markets, as a result, contain very few traders left to sell anything, hence, the name. A sold-out market can occur for various reasons, like limited choices and/or poor liquidity.
BREAKING DOWN 'Sold-Out Market'
Generally, sold-out markets occur in the futures industry or in industries that have limited liquidity to begin with. Once a market is sold-out, no contracts are available and trading grinds to a halt. This lack of activity is similar to what one sees in over-the-counter markets from time to time, where buyers sometime struggle to find sellers and vice versa.