SeekingAlpha  Aug 19  Comment 
By The Investment Doctor: African Minerals (OTCPK:AMLZF) has announced it is drawing down money from the project level to the parent company level in order to be able to meet its working capital requirements. This is quite a creative move as it...
The Economic Times  Aug 19  Comment 
"Given the liquidity and macro improvement and geopolitical risks abating, we are seeing the markets consolidating and probably going a bit higher."  Aug 18  Comment 
Visit at for the full story.
The Economic Times  Aug 18  Comment 
'Our sense is this is a short-term liquidity flow which is driving the markets. So, one needs to be cautious.'
SeekingAlpha  Aug 14  Comment 
“Only when the tide goes out do you discover who’s been swimming naked.” — Warren Buffett As any good market technician will tell you, rotations are the lifeblood of any bull market. The time to worry is when money stops flowing...
Mondo Visione  Aug 11  Comment 
Accelerating global money flows towards the US will underpin a resurgent dollar and look boost US assets in months to come, according to data compiled by CrossBorder Capital, as investors seek refuge from global political instability and look...
SeekingAlpha  Aug 10  Comment 
By Suresh Sankaran: Introduction & background Liquidity risk led an unremarkable existence up until 2007-8, when suddenly, all regulatory hell broke loose. From being a risk that no one talked about, it became highly regulated over a period...
The Economic Times  Aug 8  Comment 
The amount of money available across the globe probably pushed some of the near term investors to take certain risks.
The Hindu Business Line  Aug 5  Comment 
In its third bi-monthly monetary policy, the Reserve Bank of India left the repo rate unchanged but cut the statutory liquidity ratio. In view of the upside risks to inflation, the RBI sai...
The Straits Times  Aug 4  Comment 
August 05, 2014 1:25 AM REMISIERS are blaming the new share trading rules announced last Friday for sparking yesterday's plunge in penny stocks. Fears that the tough new regulations will hammer penny stocks and send already-thin trading volumes...


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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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