Liquidity
By CoinGecko | Updated on Jun 13, 2023
Liquidity is a measure of resource sufficiency as it concerns a cryptocurrency market or a custodial institution. For tradable assets, it translates to investors’ freedom to make trades in any direction without significant slippage. For custodial institutions, it is the ability to satisfy withdrawal requests without significant delays or friction. A sufficiently liquid market or institution should be able to sustain this in harsh market conditions.
Related Terms
Full Pay-Per-Share (FPPS)
FPPS is quite similar to PPS; the only difference is that the pool will additionally pay a transaction fee incentive if the block is identified. FPPS is the same as PPS+.
Order Book
An electronic list of all buy and sell orders in an exchange
Option
It is a financial instruments that refers to a contract offers the buyer the right to buy or sell an underlying assets at a specified price and time.
Arbitrage
A strategy where investors buy a currency in a market and sell it at a higher price in another market to gain profit.
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