Liquidity

A market's feature whereby an individual or firm can quickly purchase or sell an asset.

Ryan John Barcelona avatar
Written by Ryan John Barcelona
Updated over a week ago

Liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price. Liquidity is about how big the trade-off is between the speed of the sale and the price it can be sold for.

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