— a market's ability to absorb money without the price moving. A liquid market takes big positions without flinching; a “thin” one warps at the smallest flow.
Concretely: on a World Cup final, you can get in big and the price holds. On a third-division match or an obscure token, your single position can already move the price — against you. The less liquidity, the more your execution costs.
It's an invisible ceiling on your : a real advantage on a tiny market doesn't turn into profit, because you can't deploy capital without erasing the very gap you spotted.
Takeaway. Before cheering a price, ask: how much can I actually commit at it? Liquidity decides whether your edge is usable or just theoretical. Read next: how brokers build their margin.
Definition drawn from the Yoseri glossary. Educational outlet — nothing here is investment advice.
The Lexicon · Glossary
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