Glossary term

Liquidity

How easily something can be traded without moving its price.

Highly liquid securities trade lots of dollars each day with tight spreads. Illiquid securities are harder to trade in size and can move against large orders.

Example: SPY is very liquid; a small mid-cap stock may be much less liquid.

Where this appears

The retail liquidity edge over hedge funds Short-term reversal: real but hard to trade