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
Stop-loss Order
Conditional market order to sell at the next available price, excuted if the price of an asset falls below set-upon limit
Zero Confirmation Transaction
Another name for "unconfirmed transaction"
YTD
Acronym for Year-to-date
Market Taker
Participant of the market who buys and sells from currently existing orders
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