MAEXO

Liquidity

Glossary

Trading

Liquidity

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

Definition

In depth

Liquidity describes how much you can trade in a market without pushing the price. High liquidity = tight spreads, low slippage. Bitcoin and ETH are deeply liquid; long-tail altcoins often aren't.

Related

Related terms

Spread

The gap between the best bid and best ask price.

Slippage

The difference between expected and executed trade price.

Order book

The list of outstanding buy and sell orders for a market.

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