What is Liquidity?
Liquidity: How easily an instrument can be bought or sold quickly without moving its price; the more liquid it is, the tighter the spread.
More terms
- KYC
- The check a regulated broker makes of your identity and address before activating your account or withdrawals, under anti-money-laundering r...
- Leverage
- A ratio that lets you open a position larger than your balance, such as 1:30, which controls 30 times the margin set aside, magnifying both...
- Limit order
- An order that fills only at the price you set or better, such as buying once the price drops to a chosen level.
- Long / Short
- Going long is betting the price will rise and going short is betting it will fall; CFDs and forex let you do both.
- Lot
- The unit of trade size: a standard forex lot is 100,000 units of the base currency, a mini lot 10,000 and a micro lot 1,000.
- Margin
- The amount a broker sets aside from your balance to open a leveraged position, equal to the position value divided by the leverage.