The Economic Times  Sep 20  Comment 
A key puzzle that has gripped markets and analysts over the last year is why the growth of currency-in-circulation has increased so sharply in recent months.
The Economic Times  Sep 12  Comment 
The European Central Bank’s (ECB) Mario Draghi last week left its €1.7 trillion ($1.9 trillion) stimulus unchanged, disappointing global equities at large.
Benzinga  Sep 10  Comment 
Trading stocks is always a risky proposition, but there are certain circumstances under which it can become even more risky. One of those circumstances has to do with the time of day a trade is made. The stock market tends to be most volatile...
Mondo Visione  Sep 7  Comment 
AxiomSL, the leading global provider of regulatory reporting and risk management solutions, announced today that it has expanded its liquidity reporting solution for financial firms in Switzerland to cover the Net Stable Funding Ratio (NSFR)...
The Hindu Business Line  Aug 29  Comment 
This refers to your editorial, ‘Bond boost’ (August 29). The recommendations made by the Khan Committee are worth implementing. But there are some serious issues that need to be addressed. There ...


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Liquidity is defined as the ability to trade large size quickly at a low cost. It is one of the most important characteristics of a market. A liquid market allows traders to implement their strategies cheaply, normally with a limited bid/ask spread. A liquid market is characterized by high volume. It is generally less volatile than an illiquid market.

Usually, you can refer to three dimensions of liquidity - time, size and cost:

• “Immediacy” refers to how quickly you can execute a trade of a given size at a given cost.

• Width refers to the cost of executing a trade of a given size, including commissions.

• Depth refers to the size of a trade that can be executed at a given cost. Width and depth are very strictly related.

A liquid market is a market where you can trade large size quickly at low cost. Liquidity refers to how quickly you can convert your assets into cash. [1] Liquidation is the conversion of assets into cash by an Investor getting rid of a position in a particular type of security. [2]

For example, a portfolio manager might decide to liquidate a position in a stock by selling all the shares of that stock held in the portfolio. [3]

1610s, from liquidus. [1] Liquid Financial sense of "capable of being converted to cash" is first recorded 1818. [2]


  1. Stock Investing for Dummies‬ By Paul Mladjenovic pg22 ISBN-10: 0470401141
  2. Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott Accounting Professor ISBN-10: 0618176519 pg 212
  3. Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. ISBN-10: 0618176519 pg212


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