Locked Market Quotes

A security is a proof of ownership, of bonds, stocks or other investments. Further a security is, in essence, a piece of paper that can be appointed a value and then later, traded. The term security covers stock, bonds, futures, and myriad other financial property. The highest price an investor is ready to pay for a security is referred to as a bid. A locked market can occur when an investor's bid is equivalent to the asking price. An example of such an occurrence is when the market is brokered and only one party (often the initiator of the transaction) pays the brokerage. A locked market can result in a no bid ask spread. A bid ask spread is a variation between the asking price and the bidding price of the stock being traded. For instance, if you were to bid $70.00 and the ask price was $67.00, the bid ask price would be equivalent to $3.00. A no bid ask spread results when there is absolutely no difference between the bid and the ask price. A locked market is a temporary situation that arises within a market and results in what is called a no bid-spread. Also bear in mind that a locked market is not something that occurs frequently. A locked market often takes place when stocks that are volatile experience a sudden rise in trading volume. Volatility refers to a numerical gauging of the propensity of a particular security to change sharply and quickly, either up and down over time. Occurrences that result in a locked market are often rectified rapidly. Further, a locked market is often fixed after successive trades are completed. This rather unusual occurrence most often arises on the NASDAQ exchange, especially with orders that are submitted before the opening bell rings. If you are looking for locked in quotes, many websites offer real time stock quotes. Cybertrader is one such website, run by the Charles Schwab Company. You can view the site at the following URL: http://www.cybertrader.com/TradingMarkets/Equities/RealTimeQuotes.aspx

Locked Market Quotes

Discuss It!

Most Popular Articles

Marketplace

Related Articles

Related Categories

Recently Added

Other Great Sites