Risk

What is liquidity?

How easily you can buy or sell without moving the price yourself.

Explained in more detail

A liquid investment has many buyers and sellers at any moment. An illiquid one may look fine on screen until you try to sell a real amount and discover nobody is there. Liquidity tends to disappear exactly when you most need it.

An example

For instanceA Nifty 50 share is highly liquid. A small company trading a few thousand shares a day is not.

Why this matters to you

You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.

On AlphaVik, any time liquidity appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.

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