Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Ch1 - Introduction to Derivatives > 5. Liquidity > Flashcards

5. Liquidity Flashcards

1
Q

Liquidity is described as?

A

How easy it is to trade without moving the market price significantly, or incurring significant costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Liquidity markets can be described as?

A

Deep

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Spreads in a liquid market as described as wide, or narrow?

A

Narrow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How can liquidity be quantified? By which two indicators?

A

1.Volume of trades in a specific period
2. Number of cumulative open positions (‘open interests’).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly

Ch1 - Introduction to Derivatives (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions