#交易流动性 Four-Dimensional Measurement Indicators

Speed (Timeliness): The speed of trade execution, such as the stock market typically being able to execute trades in real-time.

Price (Bid-Ask Spread): The smaller the spread, the higher the liquidity. For example, in the forex market, currency pairs with ample liquidity (like EUR/USD) usually have a spread of less than 0.1%.

Quantity (Market Depth): The ability to execute large orders at reasonable prices. For example, after liquidity improvement in the North Exchange, the average daily trading volume increased from 2.6 billion to 43.6 billion, supporting a doubling in stock prices.

Elasticity (Price Recovery): The speed at which prices return to equilibrium after being impacted. Markets with high elasticity can quickly absorb short-term fluctuations.

Significance for Investors

Risk Management: High liquidity assets (like large-cap stocks) are easier to stop losses and adjust positions, reducing the risk of a 'liquidity trap'.

Transaction Costs: When liquidity is sufficient, the bid-ask spread is small, reducing trading friction costs. For example, when A-share liquidity is abundant, individual stocks tend to rise easily but fall hard.

Opportunity Capture: Liquidity distribution can reveal institutional trends. For example, when prices break through key resistance levels, it may trigger stop-loss orders (liquidity traps), followed by a trend reversal.

Significance for the Market