Fast Market

Definition - What does Fast Market mean?

A fast market is a period of time when heavy trading volume is accompanied by a wider than normal range of price action. Essentially, a fast market is a trading session where prices move further and faster than normal.

Fast markets usually have a cause, such as a major news event like riots, war, disaster, economic surprises and so on. Market participants digest news events at different speeds and with different perspectives, so a single event will lead to very different trading positions being taken up and abandoned.

ForexDictionary explains Fast Market

As the implications of an event and the effects of the trades already made ripple out, this has a magnifying effect as the volatility attracts more traders hoping to profit off the swings in price.

The volatility of a fast market can offer many opportunities for systematic traders to profit, but the speed at which trends change can make it difficult for some retail traders to get ideal execution on their orders.

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