Liquidity
Market Structure
Definition
The ease with which an asset can be bought or sold in the market without significantly affecting its price, with higher liquidity indicating more active trading.
Key Points
- Ability to buy/sell without price impact
- High liquidity = tight bid-ask spreads
- Important for large position entries/exits
Quick Info
Category
Market Structure
Related Topics
bid ask spread
trading volume
market depth
Related Terms
Explore related financial concepts