#TradingPairs101 Financial liquidity is the extent to which cash is available to a company or individual, or the ease and speed of converting financial assets into cash available for immediate use, without incurring significant losses in value; that is, the level of financial liquidity is determined by the amount of cash currently available, in addition to financial assets that can be easily converted into cash within a short period.

Financial assets are items of financial value that can be easily traded, such as: cash, stocks, bonds, and bank deposits. Although these assets are not considered to have intrinsic material value, such as land and buildings, their value depends on the level of demand for them in the market; for example, the value of stocks may rise or fall significantly depending on market conditions.