Efficient Market

What is Efficient Market?

Efficient Market meaning In economic theory, an efficient market is one in which market prices adjust rapidly to reflect new information. The degree to which the market is efficient depends on the quality of information reflected in market prices. In an efficient market, profitablearbitrage opportunities do not persist and traders cannot expect to consistently outperform the market unless they have lower-cost access to information that is reflected in market prices or unless they have access to information before it is reflected in market prices. See Random Walk.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary