Liquidity

A market’s liquidity is assessed by how straightforward it is for a trader to make a transaction. Ideally, a trader will want to be able to freely buy or sell contracts in the volume they need and will expect the transaction price to be as close as possible to fair value and for the full volume traded. Liquidity is therefore talked about by the volume available to trade at a given moment (depth) and the tightness of the bid/offer.