Source: https://mochatrade.com/learn/glossary/liquidity

# Liquidity
URL: https://mochatrade.com/learn/glossary/liquidity
Last modified: 2026-10-17

Liquidity is how much you can trade without moving the price: a tight spread and deep size at each level. US Treasuries are [the deepest market on earth](https://mochatrade.com/learn/start-here/us-markets-for-indian-traders). Liquidity vanishes when you need it, because [market makers pull quotes into every number](https://mochatrade.com/learn/us-market-structure/who-moves-us-stocks), and the after-hours book is [thin by design](https://mochatrade.com/learn/us-market-structure/how-us-stock-prices-form).

## Related terms

- Market maker: https://mochatrade.com/learn/glossary/market-maker
- Order book: https://mochatrade.com/learn/glossary/order-book
- Limit order: https://mochatrade.com/learn/glossary/limit-order
- Stop-limit order: https://mochatrade.com/learn/glossary/stop-limit-order
- Hedging: https://mochatrade.com/learn/glossary/hedging
- Closing auction (official close): https://mochatrade.com/learn/glossary/closing-auction

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.