Liquidity

Liquidity describes how easily an asset can be bought or sold in the market.

Approved short definition: How easily an asset can be bought or sold. Example: Assets with lower liquidity can be harder to buy or sell at the price you expect. Do not use: Do not use “liquidity” as a synonym for Cash Available, available balance, or Portfolio Value. If a customer uses “liquidity” to mean how much cash they have, normalise the wording to the relevant balance term. Aliases / search terms: Market liquidity, liquid asset, low liquidity, high liquidity, trading liquidity, liquidity risk, trading activity, easy to buy or sell, hard to buy or sell, cash liquidity, account liquidity Related terms: Market, Asset, Volatility, Spread, Execution, Trading Hours, 24/5 Trading, Position, Cash Available, Available Balance