#交易流动性 #交易流动性 Trading liquidity is a key concept in financial markets that reflects the ease and cost with which market participants can execute trades. Here are the details about trading liquidity:
Definition of Liquidity
• Widely accepted definition: A liquid market allows participants to quickly execute large transactions with minimal impact on prices. This means there are sufficient buy and sell quotes in the market, with narrow spreads, allowing investors to expect to complete transactions at prices close to the current average market price over an extended period.
• Definition by Black (1971): Liquidity is the ability to transform stock assets into cash, involving the execution costs of the process of monetization or conversion. Markets with good liquidity have faster and lower-cost monetization or conversion processes.
Measuring Liquidity
