Liquidity
TradingUpdated: October 15, 2025
Also known as: Market Liquidity, Trading Volume
Browse all Trading terms
The ease with which an asset can be bought or sold without affecting its price
The ease with which an asset can be bought or sold without affecting its price.
High liquidity means there are many buyers and sellers, allowing large transactions without significant price impact. Low liquidity can lead to slippage and difficulty executing trades at desired prices.