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OptionAutomator Options Trading Glossary:
Definition, Examples & Resources:Liquid / Liquidity'
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What is Liquid / Liquidity in Options Trading ?
Liquid / Liquidity
The characteristic of high
of trades in an option so as to be able to easily square of any held
in that option at reasonable market price. Volume and the width of the
are good idications of overall contract liquidity.
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A uni-directional trending market where there are either more very high volume buyers or more very high volume sellers whose trading activity maintain the security's trend[click to read more]
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