In business economics or investments, market liquidity is an asset's ability to be sold without causing a major change in the price and with minimum loss of value. Money or cash in hand is the common liquid asset and can be used immediately to perform economic activities like buying, selling or physical debt, make connection between wants & needs.A liquid asset has some or more of the following features. It can be sold quickly with minimum loss of value, any time within market hours.The one prime feature is that willing buyers and sellers all time available.Probability is one of the highlight of liquid that the next trade is perform at a price equal to the last one.
A market may be considered deeply liquid if there are more ready and willing buyers & seller.Liquidity of a product can be measured as how often it is bought and sold this is known as Volume. Often investment in liquid market such as the stock market or future market are considered to be more liquid than investment like real estate based on their ability to be converted quickly. speculators and market makers are key contributors to the liquidity of a market or assets.Speculators and market makers are the individuals or institutions that seek to profit from anticipated increases or decreases in a particular market price.By doing this, they provide the capital needed to facilitate the liquidity.
A market may be considered deeply liquid if there are more ready and willing buyers & seller.Liquidity of a product can be measured as how often it is bought and sold this is known as Volume. Often investment in liquid market such as the stock market or future market are considered to be more liquid than investment like real estate based on their ability to be converted quickly. speculators and market makers are key contributors to the liquidity of a market or assets.Speculators and market makers are the individuals or institutions that seek to profit from anticipated increases or decreases in a particular market price.By doing this, they provide the capital needed to facilitate the liquidity.
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Muhammad Anas
Business Consultant
muhammad.anas@adamadvisors.com
+971 50 70 45 733
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PO Box 183827 | Dubai | United Arab Emirates
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