Glossary entry
Illiquidity is difficulty buying or selling an asset promptly at a reasonable price without moving the market substantially. It can reflect few counterparties, limited information, trading restrictions, or a large order relative to available interest. An asset with a published valuation may still be illiquid if no buyer will transact near that value.
Illustrative example
An investor sees an estimated value of 5,000 for a holding but finds only a bid of 4,300 when attempting an immediate sale.
What to consider
A valuation is not a cash exit. Allow for delays, wider spreads, and possible discounts when assessing money needed soon.
General information, not a personal recommendation. Product availability, rights, and obligations are determined by the relevant provider, jurisdiction, and approved agreements.