What is Liquidity?

Stock Market Terms explained as simple as possible


Liquidity refers to how easy shares can be bought without causing significant price moves.

You usually have higher liquidity when more participants are trading higher share sizes. There are individual stocks that will always have higher liquidity than others.

Liquitidy at the market open and close

Liquidity tends to be much higher in the first hour of the market open and the last hour before the close.

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