Posted in Finance, Accounting and Economics Terms, Total Reads: 424
Definition: Choice Market
This is a kind of Financial Market where the bid price and the ask price is the same. Bid price is the maximum price that the buyer will pay to the seller for any goods/securities. Whereas the ask price is the seller will accept for goods/securities.
Thus in a Choice market if the goods/securities are purchased at a certain value, then it can be sold also at the same value.
However this kind of markets are rare as in most cases of financial market there is a non-zero value between bid price and ask price. Forex market can be an example of such a market where certain currency pair exists which are traded for less than 1% difference value.
For ex. In case of USD and Euro the difference is almost 1 basis point or 0.01%.