Definition
Liquidity describes how readily an asset can be bought or sold, especially at meaningful size, without causing a large price change.
Simple example
A pool may quote a price for a tiny swap but produce much worse execution for a large swap because the trade changes the pool balance.
Often confused with
Trading volume records activity over a period. It is not the same as available liquidity at the moment you trade.
Source
See something wrong? Brokzi logs material changes. Prepare a correction note.
