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locked market

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Financial Dictionary

Locked Market

A short-term situation occurring within a market where both the bid and ask are identical, resulting in no bid-ask spread.

Investopedia Commentary

This usually occurs in stocks that are highly volatile and experience a significant trading volume. Locked markets are typically corrected immediately through subsequent trades. This abnormal market condition occurs mainly on the Nasdaq exchange for orders entered before the opening bell.

See also: Ask, Bid, Bid-Ask Spread, Crossed Market, Nasdaq, Spread

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Financial Dictionary

locked market

A somewhat unusual occurrence in which the bid price and ask price for a security are equal.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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