Frictionless Market
A theoretical trading environment where all costs and restraints associated with transactions are non-existent. Investopedia Says:
The advent of discount brokers and their low commissions has brought the market closer to a frictionless state. But, in reality there are no truly frictionless markets since trading is always associated with certain costs or restraints, such as commissions and tax implications. Related Terms:
Allocational Efficiency
Commission
Discount Broker
Expense Ratio
Friction Cost
Operational Efficiency
Transaction
Transaction Costs |