Finance

What is Liquidity?

How quickly an asset can be bought or sold without moving the price much.

300 filled · price unmoved

Finish the sentencePrompthaus

High liquidity means…

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In real work

Liquidity dried up after the headline. Widen spreads before you lift size.

In the illustration

A 300-share buy rides the tray across the gap and fills entirely from the tall stack at the best ask; the stack shortens but the mid marker does not move.

Use it in a prompt

Rank the portfolio's positions by liquidity in your finance platform: average daily volume, days to exit at 20 percent of volume, and the ones that take more than five days.

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