The advantages of liquidity in volatile markets

Liquidity measures how quickly a good can be bought and sold at the market price. An instrument’s liquidity depends on its popularity, the ease of transactions with it, and its price. At the same time, liquidity is itself affected by how quickly the good’s stock marketprice is set and how narrow the range of possible prices is. Besides the liquidity of goods, one can also speak of the liquidity of an entire market. This usually means the number of deals made in a specific amount of time (typically, in a day).Q4 2019 hedge fund letters, conferences and moreDetermining market pricesHigh liquidit…

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