Tight market,
Definition of Tight market:
A market with narrow bid-ask spreads. A tight market for a security or commodity is characterized by an abundance of market liquidity and, typically, high trading volume. Intense price competition on both the buyers' and sellers' sides leads to tight spreads, the hallmark of a tight market.
The term "tight market" may also refer to a physical market wherein supply is constrained in the face of high demand, resulting in higher prices for the product or service.
Market characterized by active trading and large volumes but narrow margins (spreads).
How to use Tight market in a sentence?
- Tight markets tend to occur in highly liquid, high-volume, blue-chip stocks where there are an abundance of buyers and sellers at all times.
- A tight market refers to a trading environment in which the price difference between the best bid and offer is very small.
- With a tight market, large blocks of stock can often trade without significantly moving the price of the security.
Meaning of Tight market & Tight market Definition
