Liquidity
« Back to Glossary Index
« Back to Glossary Index
Tags: Trading
Categories: Forex
A term that refers to the relationship between transaction size and price movements. For example, a market is liquid if large transactions can occur with only minimal price changes.
Liquidity (Wikipedia)
Look up liquidity in Wiktionary, the free dictionary.
Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include:
- Market liquidity, the ease with which an asset can be sold
- Accounting liquidity, the ability to meet cash obligations when due
- Liquid capital, the amount of money that a firm holds
- Liquidity risk, the risk that an asset will have impaired market liquidity
