The basics
Liquidity
Liquidity measures how easily you can buy or sell an asset quickly without moving its price.
Liquidity measures how easily you can buy or sell an asset quickly without moving its price.
A highly liquid asset trades in large volume with a tight spread: you get in and out easily. An illiquid asset is riskier: the price can jump and it is harder to exit at the right moment.
A large S&P 500 stock is highly liquid; a tiny penny stock is far less so.
Understanding a term is good. Applying it on a real platform with a clear method is better. That is exactly what we do in 5 days.