ES 5-26-17 : Hot Topic

Locked Market

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Definition of 'Locked Market'

This is an extremely short-term situation where the bid and ask prices in a market are the same which results in a zero bid-ask spread.

Highly volatile securities will sometimes exhibit this behavior when there is significant volume. Locked Markets are typically adjusted to normal markets through trades which are executed during this market type. Locked Markets can occur at the opening bell when orders are entered before the opening bell of the market.

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