ELI5: Explain Like I'm 5

Market liquidity

Market liquidity is like a super busy grocery store. The store has plenty of things to buy, lots of people buying them, and the lines are always short. That's because there are always people in the store buying and selling. So the store is always stocked, and everyone can get the items they want quickly.

It's the same with market liquidity. Market liquidity means that it is easy to buy and sell assets - like stocks, bonds, and cryptocurrencies. The market is always stocked with things to buy and sell, there are always people ready to buy and sell, and it's easy to make trades quickly. Having a liquid market makes it easy for people to get in and out of trades without having to wait too long.
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