The Economic Times  May 27  Comment 
The Reserve Bank will buy government bonds worth Rs 15,000 crore through open market operations (OMO) next week in order to infuse liquidity.
Mondo Visione  May 26  Comment 
AxiomSL hosted a workshop in London today discuss current questions arising out of the implementation of upcoming EBA Additional Liquidity Monitoring Metrics (ALMM) and EBA Liquid Coverage Ratio(LCR) regulatory reports.  One of a series of...
Clusterstock  May 26  Comment 
What is liquidity? It is a big topic in financial markets — especially the bond market lately, where there's been a lot of hand wringing about the lack of liquidity. The worry is simply that when  investors want to sell large amounts of...
The Economic Times  May 25  Comment 
RBI has slashed rates by 150 bps since the start of last year, bringing the policy rate to 6.50%, but the country's banks have cut lending rates by less than half that.
Benzinga  May 19  Comment 
BMO Capital Markets has downgraded Xtera Communications Inc (NASDAQ: XCOM) to Market Perform from Outperform after the company reported a weak quarter due to balance sheet issues. Disappointing Q2 Xtera's second-quarter revenues, gross...
The Economic Times  May 17  Comment 
A financial inclusion drive has seen 15% of unbanked Indians become part of the system, but the amount of cash outside it has risen to record levels.
Financial Times  May 12  Comment 
Embattled commodity trader faces shortfall after banks tighten lending


Related Articles



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


Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki