We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Business

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is a Continuous Market?

Malcolm Tatum
By
Updated: May 17, 2024
Views: 11,421
Share

Continuous markets are any markets that are generating a level of activity that is healthy enough to allow a typical trade to take place without creating a significant impact on the current market price for the security. While the trading may be brisk, it remains constant enough that the activity does not lead to any strong indicators that would entice investors to begin executing larger orders to buy or sell. Essentially, a continuous market is very stable, experiences a consistent level of trading, and tends to maintain an equitable market price.

In general, most financial analysts begin assessing the current status of a given market with the assumption that the current trading does indicate a continuous market. It is only when the analyst begins to notice some factors that are impacting the market price is an unusual manner that the market is deemed to be discontinuous in nature. For the most part, the marketplace is understood to be continuous in nature, but tempered with the understanding that this status could easily change on any given trading day, given the right set of circumstances.

For the conservative investor, a continuous market is often considered an advantage. This market condition makes it relatively easy to buy and sell various types of securities and make a little profit on the trades. Since the rate of volatility is relatively low with a continuous market, the trading options for the careful investor may appear to be more plentiful.

At the same time, more daring investors do not tend to ignore a continuous market. Since it is always possible for the relative equilibrium of this market to be impacted by any number of factors, the aggressive investor may monitor closely for signs that volatility is about to increase drastically. This allows the investor to execute orders that will generate a huge profit if the volatile conditions do come to pass. Depending on the circumstances and the size of the orders placed by aggressive investors, these actions can accelerate the occurrence of increased volatility and help move the continuous market into a discontinuous state.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.

Editors' Picks

Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
Share
https://www.wisegeek.net/what-is-a-continuous-market.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.