In financial markets, liquidity refers to the ease of dealing in a security Ð whether shares, options, warrants or some other instrument Ð and turning them into cash.
Investment Dictionary - Liquidity
The Liquidity term refers to the easy with which an asset can be converted into cash.
Cash and assets easily converted to cash are liquid assets, and liquidity is the extent to which an individual or firm can produce cash when necessary.
a measure of the number of shares, or dollar value of shares traded daily. Mutual funds and other institutional buyers prefer high liquidity stocks so they can easily move in and out of positions.
News On Liquidity ...
Leverage ratio's provide investors and lenders with insight into a companies ability to meet its short term debt obligations.
The amount of trading activity, and thereby the ease with which you can get in and out of a market. Measured by volume (and open interest in the case of future markets). It is the capability to convert an asset to money quickly.
The degree of an asset's ability to be converted to cash at its fair market price ...
Liquidity Risk of OTC Stocks
by Slav Fedorov, Demand Media
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The ability of a company to pay off its debt obligations is measured by liquidity ratios.
There can be no ironclad assurance that, at all times, a liquid market will exist for offsetting a futures contract that you have previously bought or sold.
Market liquidity is a business or economics term that refers to the ability to quickly buy or sell a particular item without causing a significant movement in the price. The term is usually shortened to liquidity.
In economics, a liquidity trap is a situation when the economy is stagnant and the interest rate is equal to, or slightly above, 0 percent.
Definition: Liquidity is the ability to quickly convert an asset into cash without a big effect on the price. In forex trading, it applies as the ability to buy or sell a currency pair without a real effect on the price.
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Trading Dictionary Terms and definitions for active trading, forex, futures, stocks, and options
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Can be high, with thousands of transactions being carried out on a continuous basis; or low, with only intermittent price-quote updates and transactions.
Liquidity: In terms of markets, liquidity generally refers to the ability to buy and sell assets quickly and in large volume without substantially affecting the asset’s price.
Liquidity theory of the term structure
A biased expectations theory that asserts that the implied forward rates will not be a pure estimate of the market`s expectations of Future interest rates because they embody a liquidity ...
In accounting, liquidity (or accounting liquidity) is a measure of the ability of a debtor to pay their debts as and when they fall due. It is usually expressed as a ratio or a percentage of current liabilities.
One of the most common questions new investors ask is, "If I invest in a home or in real estate, should I pay off the mortgage early?
Cash Flow Liquidity Ratio
Calculate Cash Flow Liquidity Ratio with our free online Cash Flow Liquidity Ratio Calculator.
The ease and quickness with which assets can be converted to cash.
No profit, no liquidity
By Daniel P. Collins
A recent Bloomberg story highlighted how University of Chicago Professor Eric Budish is proposing a new electronic trading market structure for equities and derivatives.
Commodity market liquidity often correlates very well with commodity market trading profits. There are three benefits to traders in high commodity market liquidity. The first is that it is easier to enter and exit trades.
Market Size and Liquidity
Unlike other financial markets like the New York Stock Exchange, the forex spot market has neither a physical location nor a central exchange.
8) Understand how liquidity impacts the bid/ask spread
Very similar to #5 above. Higher options liquidity means higher trading volume, and thus, less variance when it comes to pairing up buyers and sellers.
Minimum Investments, Transaction Costs and Liquidity
The minimum investment for a mortgage security varies according to the structure of the offering, but most tranches sold to individual investors require a minimum investment of $1,000.
Winning traders make prices efficient and provide most liquidity. Utilitarian and futile traders effectively underwrite the winning traders' efforts.
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Liquidity generally refers to how easily a non-cash asset can be converted to cash. As an example: US Savings Bonds are generally very liquid. A large building, requiring months to sell, is generally considered not very liquid.
Liquidity refers to an investor's ability to convert an asset into cash. The faster the conversion the more liquid the asset. Illiquidity is a risk in that an investor might not be able to convert the asset to cash when most needed.
The degree of ease to convert an asset into cash.
A measure of how much dollar volume is required to move the stock's price up or down one percentage point.
Stock chart volume also shows us the amount of liquidity in a stock. Liquidity just simply refers to how easily it is to get in and out of a stock.
Liquidity - Refers to the number of buyers and sellers in the market willing to trade at any given time.
Liquidity / liquid Market:
The ease with which a security can be converted to cash in the marketplace without substantially affecting the assets price.
A market participant that is obliged to buy and sell less liquid securities that it is registered in. In the process, it facilitates trading and improves liquidity in those securities.
Working capital compares current assets to current liabilities, and serves as the liquid reserve available to satisfy contingencies and uncertainties.
Liquidity: The ease with which a stock may be bought or sold in volume on the marketplace without causing dramatic price fluctuations.
The ease with which financial assets can be converted to cash without creating a substantial change in price or value.
Liquidity: A function of volume and activity in a market. It is the efficiency and cost effectiveness with which positions can be traded and orders executed. A more liquid market will provide more frequent price quotes at a smaller bid/ask spread.
Liquidity: For the most part, ETFs help increase liquidity and trading of more illiquid assets. However, when liquidity suffers an extreme drop, the bid-ask spread of ETFs can significantly widen and ETF pricing can become difficult or impossible.
Liquidity---The U.S. futures markets are the largest in the world in terms of trading volume and dollars, transacting hundreds of millions of dollars daily.
Liquidity: Refers to the ease with which an investment may be converted to cash at a reasonable price.
Load: Commissions charged to holders of mutual fund units. (See sales charge.) ...
Liquidity refers to the amount of transactions in a particular counter, the larger the volume of trading, higher the liquidity.
Listed securities ...
liquidity " the degree to which it is easy to buy or sell a stock in the market
margin account " a line of credit with a bank, broker or trust company where money is borrowed for investing while using investments as collateral ...
Liquidity Measurement of how easily an asset can be sold without affecting its price.
Listed security Stock or bond that is listed for trading on a major exchange or marketplace.
How quickly an investment can be turned into cash. Stock ownership, for example, is usually a very liquid investment, because you can redeem your shares at any time. On the other hand, a house is a very illiquid investment.
Liquidity: Market situation in which quick purchase or sale of a security is possible without causing substantial changes in prices.
Liquidity - a market that allows for easy entry and exit of a position due to the large amount of volume
Low - lowest price that occurs for a trading period
Margin - effectively borrowed money ...
Sometimes you are not able to get out of your investment conveniently, and at a reasonable price. For example in 2008, you may have found it tough to sell your house at a price you wanted.
Liquidity - The ability of an insurance company to convert its assets to cash quickly.
With a daily trading volume that is many times larger than the New York Stock Exchange, there are always broker and dealers willing to buy or sell currencies in the Forex market.
Liquidity: The measure of how quickly an investment can be turned into cash. A mutual fund generally is considered a very liquid investment, because shares can be redeemed at any time. In contrast, a house is a very illiquid investment.
Liquidity- This is the ability of a trader to convert his assets to cash in a fast way.
Margin- This is a collateral willing to be issued by a trader to a broker when he wants to borrow funds.
A reserve fund for a company or person containing money market and highly liquid investments.
Living Will ...
Liquidity - The capability of ready conversion of an asset or investment to cash.
Market Price - The current price of the security in the market.
Market Risk - The possibility that the price of the security will change over time.
Liquidity Ratios - A series of ratios that measure the liquidity, or cash generating ability, of a firm.
Listed Stock - A stock that is listed for trading on an organized stock exchange.
Liquidity Data Bank - A computerized profile of CBOT market activity, used by technical traders to analyze price trends and develop trading strategies.
Liquidity - The characteristic of a market that enables investors to buy and sell securities easily.
Listed Options - An option that trades on a national option exchange.
Listed Securities - Securities that trade on a national exchange.
This refers to how easily securities can be bought or sold in the market. A security is liquid when there are enough units outstanding for large transactions to occur without a substantial change in price.
Over 85% of all FX transactions involve seven major currencies (AUD, CAD, CHF, Euro, GBP, JPY and USD). In a 1.5 trillion dollar daily market, traders are usually able to get in or out of currency positions in the major currencies.
Liquidity aggregator: An agency broker (does not commit capital) that takes a client buy or sell order and contacts a variety of market makers.
See also: Market, Trading, Stock, Profit, Risk