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Fast Market Definition

Definition

The word fast market can be utilized to refer to a state in which the accelerated trading of a security ends in a delay in the transmission of information regarding price and sales quotes. While a speedy market may influence stocks that are common, the word is more frequently connected with the trading of options.

Explanation

When securities have been traded at a rapid fashion, the level of information exchanged may produce a delay in the upgrading of available information getting passed to traders. That is called a speedy economy state. While this sometimes happens at any security, options are specially prone to the issue. A quick market is going to come with volatile rates and relatively large trading volumes.

The market will officially announce a quick market state, as soon as announced, brokers aren’t held to the exact standards as the ones who employ during normal market terms. As an instance, throughout a quick selling price quotes will probably be postponed and also a broker might not have the ability to perform an arrangement in a timely manner leading in earnings at significantly less than desired pricepoints.