What is Liquidity?
How easily you can buy or sell without moving the price: depth, spread and turnover together.
A liquid market absorbs size with little price impact. An illiquid one moves sharply on modest volume, which cuts both ways: exits get expensive exactly when you need them.
Coin pages expose the ingredients — volume, market cap and exchange count — and fold them into the risk score, which counts liquidity at 20% of the total.
How our model uses it
Liquidity (volume ÷ market cap) is one of the six risk-score inputs, weighted 0.20.
Related terms
- Trading volumeTrading
The value traded over a period, usually 24 hours; a measure of interest and turnover.
- SlippageTrading
The difference between the price you expected and the price you got, from moving the book yourself.
- Risk scoreOur model
A 0–100 blend of volatility, liquidity, size, drawdown, exchange count and age.