Liquidity

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Financial Times  Aug 27  Comment 
Regulation reduces dealer holdings, causing rising spreads
The Economic Times  Aug 26  Comment 
Rising short-term funding stress in the interbank market, which has complicated Beijing's efforts to support the market, appears to have eased.
The Hindu Business Line  Aug 26  Comment 
China's central bank said on Wednesday it injected 140 billion yuan ($21.8 billion) into the interbank money market via short-term liquidity operations.The loans, which mature in six days,...
The Economic Times  Aug 25  Comment 
Oil is again back to the levels, it is actually a 10-year kind of low and that provides a good amount of indirect stimulus to our economy.
The Economic Times  Aug 25  Comment 
You are going to get no stimulus out of China. So the rout which really had started earlier last week was really pretty terrible on Monday.
The Economic Times  Aug 24  Comment 
The sharp slump in US stocks on opening on Monday threw US options markets out of gear as a dearth of liquidity made it extremely difficult for traders to make trades.
Financial Times  Aug 24  Comment 
Dollar also a major casualty as US stock indices dive
Mondo Visione  Aug 20  Comment 
Ooredoo announced anagreement with The Group Securities Co. to provide sponsored Liquidity Provision Services, in accordance with the QFMA-approved liquidity provision scheme. The service  started today Thursday 20 August , 2015. The...
Mondo Visione  Aug 19  Comment 
Liquidnet, the global institutional trading network, today announced the launch of its Next Gen Algo suite, designed to enhance the trading performance of its asset manager Member community around the world with precision tools built to address...




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Liquidity

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]

References

  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

4. http://www.bestcashloans.org.uk/

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