define either-way market, please

By: Kasey Silva - India.
22 March, 2009

– thanks for a most fantastic site. I have been trading on CMC for loosely 1 or 2 months now, and i ran by a term that i can't follow: what is either-way market?

Capital Adept Answers:

thank you for your kind words, Kasey. Either-way market is A condition that exists in the eurodollar interbank deposit market when the bid and offer rates for a particular period are equal. Increasing levels of liquidity can narrow the spread between bid and offer rates until the two values are identical, resulting in an either-way market. In an either-way market, banks can go either way between lending or borrowing at the current rate. The convergence of the bid and offer rates creates this indifference point.