1 Liquid Market - the degree to which market participants are willing to buy and sell at every price level. |
Liquid markets are characterized a high level of trading actively preformed by a diverse group of traders (hedgers, corporations, governments, speculators).
Liquid markets are usually described as safer, since investors are more certain that they are able to get into or out of a trade in and Certificate of Deposits or in equities, Blue Chip stocks.