What Is a "Stale Price" in a Thinly Traded Market? ▴ Learn

What Is a “Stale Price” in a Thinly Traded Market?

A stale price is a quoted price that does not reflect the current fair market value of an asset because there have been no recent trades or quotes. In a thinly traded market, a lack of trading activity means the last recorded price may be significantly different from the price at which a trade could actually be executed.

Stale prices can lead to incorrect valuations.

What Is the Effective Spread and How Does It Differ from the Quoted Spread in a Thin Market?

How Is the Option Premium Quoted in the Market?

What Specific Algorithms Are Used to Dynamically Adjust Quotes Based on Inventory Delta?

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