What is a close market?

The close market is any investment market that is currently characterized by close spread. This usually includes a very limited difference in the range between offer prices and offering prices. Several different factors can join and create a situation from a nearby market that may take a short time or stay in place for a longer period of time.

One of the factors that can help create a close market is the amount of trading on the market at present. If the volume of trading is low or moderate, there is no real motivation for the development of the nearby market, as offers and bid prices are likely to differ more within reach. However, the high volume of business activities will support great competition with the market. This high volume means that offers and offers prices will start to reduce somewhat.

, along with the level of volume trading on a nearby market, various other markets of the market can also affect the spread between offer and offer prices. Narrow spread of mohOU to be influenced by factors such as political unrest, currency devaluation or natural acts that affect the value of the basic security associated with some main investment opportunities that correspond to most market trading. The appearance of one market creator can often lead to the appearance of other factors that combine to help create a close market.

The concept of the near market is in direct opposition to the open market. Markets that are considered to be an open wide range rather than narrow spread. The wide spread between the offer and the offer of prices is not necessarily better or worse than the narrow spread that is located in nearby markets. Depending on the position of the investor, it is possible to make profitable acquisitions and sale on both types of markets. As with the allstrategie, the investor should be thoroughly placed before the broker order before the broker.