2 Types of Liquidity in the market

 

Buy Side Liquidity

Buy side liquidity refers to the amount of buying power available in a given market. It is the ability of buyers to purchase securities and other assets at a given price, and the ability of sellers to sell those same assets at the same price. Buy side liquidity is often seen as an indicator of market health and can be affected by factors such as supply and demand, market sentiment, and economic conditions.

Sell Side Liquity

Sell side liquidity refers to the availability of sellers in the market who are willing to sell a particular security or asset. Sell side liquidity is important for a market to function efficiently, as it allows buyers to purchase the asset or security at a fair price. Sell side liquidity also reduces transaction costs, as buyers can quickly find a seller willing to transact at a reasonable price.