Absorbed (Stock Market)

Absorbed market

The expression absorbed describes a situation in the stock market, when there are corresponding orders on both sides of the market in a particular stock – it means that at the current price there are both people willing to buy and people willing to sell. As a result, in an absorbed market further transactions can be made without the stock’s price changing.

Point of absorption

At some moment the market in the particular stock can reach the point of absorption, which is the situation where no corresponding orders are left on one side and the market price of the stock must move for the outstanding orders on the other side to be filled.

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