What Is Liquidity?

Liquidity refers to the depth of the order books: how much volume a single trade can achieve without moving the price.

It can be expressed as slippage or absolute depth of the order book. The latter is very easy for AMM based exchanges where the liquidity is a continuous function.

Trading Strategy provides datasets for AMM liquidity.

DeFi and trading Dictionary

You are currently browing Trading Strategy's DeFi, Web3 and trading terminology database. See the full dictionary for more terms.

Learn algorithmic trading

Start learning algorithmic trading and quantitative finance from Trading Strategy's learning resources collection.

What Is Liquidity?

DeFi and trading Dictionary

Learn algorithmic trading

Do you want to become an expert on decentralised technology?