What it is
A slow market is a financial market facing a period of subdued trading activity and changes in prices. The lack of activity may also mean that there are no or few new companies or products, like new bond issuances, entering the market.
With low buying and selling orders, prices stay mostly flat and are not headed significantly up or down. A slow market is neither a bull market (when prices are trending up) nor a bear market (when prices are trending down).
What it means for you
If you’re trading in a slow market, buy and sell orders may take longer to push through due to low activity. To complete a sale, you might need to accept an offer that’s lower than your asking price or go beyond the amount you were originally willing to spend.
It can be harder to make a profit when there’s not much interest to buy among investors. A slow period could also discourage traders from selling, further causing stagnation in prices.
A slow market may happen when there are no major events or news that can move the markets. This flat period may also reflect a “pause” or indecision among investors following an upward or downward trend.
