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Finance Dictionary and Glossary of Investment Terms
Locked Market
Definition 1.
A short-term situation occurring within a market where both the bid and ask are identical, resulting in no bid-ask spread.
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Definition 2.
A market is locked if the bid price equals the ask price. This can occur, for example, if the market is brokered and one side pays brokerage only, in over-the-counter trading the initiator of the transaction. Highly competitive market environment with inside bid and offering at the same price. Often occurs when an OTC dealer has not updated the market.
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Definition 3.
A market for a stock in which the bid price equals the ask price (in other words, the bid/ask spread is zero).
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