Liquidity

Liquidity is how much can be traded at a price without moving it.

When many buyers and sellers are present, spreads are tight and orders fill near the price you saw. When few are, the opposite.

Liquidity follows the clock: the London and New York hours are the deepest, and late evening and rollover the thinnest.

Related terms

SpreadSlippageTrading sessions

A definition, not financial advice. Trading carries a risk of loss.

All 64 terms