CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

What is a private electronic market?

Private electronic market

This refers to a network of pre-qualified buyers and sellers who are linked in a market via the internet. The aim is to provide competition on prices while also allowing flexibility on proposed deals.

Where have you heard about a private electronic market?

You may not have heard of this type of market place, unless you have been personally involved in one, either as a buyer or seller. The term is often abbreviated to PEM.

What you need to know about private electronic markets.

The idea of a PEM is to combine elements of open and closed markets. The former is a transaction where there is no pre-existing relationship between buyer and seller, for example an eBay transaction. A closed market, such as a sealed tender bid for services, is conducted completely in private, meaning competitors can't compare their bids and adjust accordingly. A PEM aims to work for both sellers and buyers, with competition providing the best possible price for the seller, while the flexibility allows the buyer to negotiate exactly what they want.

Find out more about private electronic markets.

A PEM can allow a potential buyer to negotiate on aspects such as payment terms on a deal.

Related Terms

Latest video

Latest Articles

View all articles

Still looking for a broker you can trust?

Join the 610,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading