Why liquidity is important for investors in money market
Answers
Answered by
1
Answer:
In a liquid market, a seller will quickly find a buyer without having to cut the price of the asset to make it attractive. And conversely a buyer won't have to pay an increased amount to secure the asset they want.
Explanation:
please mark me as brainliest and thank my ans.
Answered by
0
Answer:
When you’re trading financial markets, liquidity needs to be considered before every position is opened or closed. This is because a lack of liquidity is often associated with increased risk.
If there is volatility on the market, but there are fewer buyers than sellers, it can be more difficult to close your position. In this situation you could risk becoming stuck in a losing position or you might have to go to multiple parties, with different prices, just to fill your order.
Explanation:
Similar questions