What is a Close Market?
The close market is any investment market that is currently characterized by a narrow spread situation. This normally involves a very limited difference in the spread between bid prices and offer prices. Several different factors can come together and create a close market situation that may last for a short time or remain in place for an extended period of time. One of the factors that can help create a close market is the amount of trading currently taking place in the market. When the volume of trading is at a low or moderate level, there is no real incentive for a close market situation to develop, since bid and offer prices are likely to differ more in range. However, a high volume of trading activity will promote a great deal of competition for the investments that make up the market. That high volume means that bidding and offer pricing will begin to narrow somewhat. Along with the volume level of trading within the close market, various other market makers may also influence th
” The close market is any investment market that is currently characterized by a narrow spread situation. This normally involves a very limited difference in the spread between bid prices and offer prices. Several different factors can come together and create a close market situation that may last for a short time or remain in place for an extended period of time. . One of the factors that can help create a close market is the amount of trading currently taking place in the market.
