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The glossary
Liquidity

An asset is deemed liquid if it can be turned into cash quickly and without affecting its price. The opposite of liquid is illiquid which applies to assets that can’t be bought or sold in a short period of time or without substantial discount.

Anecdote

Liquidity is a central concept in finance. In a period of crisis, the liquidity tends to reduce on financial markets as fewer people are willing to trade.

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