Should we consider volatility and liquidity to be important for trading?

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Richard Cross
Answered 3 years, 1 month ago
<p id="isPasted">When there are more Customers &amp; Producers in Chocolate Industry, the market looks great, as a customer, you are not dependent on a Single producer &amp; vice versa for the Producer. This kind of Flexibility is called Liquditity.</p><p>When the Customers are not constantly demanding products or the prices offered by them is varying like ECG, they are said to be volatile &amp; same with producers with volatile supply. The market with this unpredictable condition is called Volatile Market.</p><p>When these conditions put in stock market perspective are called Liquditity &amp; Volatility respectively.</p>
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Harvey Brown
Answered 3 years, 1 month ago
<p id="isPasted">Liquidity</p><p>The term liquidity refers to how quickly or easily something can be bought or sold in the market</p><p>Volatility</p><p>It’s the pace at which a market’s price changes over a specified period of time. Volatility increases before, during and after news events. This is particularly true with an announcement.</p>
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William Cummings
Answered 3 years, 1 month ago
<p id="isPasted">liquidity : means that the numbers of buyer and seller present in and security,</p><p>suppose a company which has very less number of buyers and sellers participating so you will face delay is order getting executed, and in a company like reliance there are larger number of buyers and sellers participating so the order will be executed very fast due to availability of both the parties.</p><p>less number of participation's low liquidity, where as high number of participation’s high liquidity.</p><p>&nbsp;High Liquidity is always preferred as order execution is fast and accurate.</p><p>Volatility : means movement in share price, when …</p>
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Christopher Campbell
Answered 3 years, 1 month ago
<p id="isPasted">Volatility is a well-defined concept, “liquidity” has multiple aspects.</p><p>One aspect of liquidity is the price certainty at which you can buy and sell. One money market fund share and one bitcoin can be converted to cash with about the same amount of effort and time, but you know how much you’ll get for the money market fund share ($1.00) with high confidence, while bitcoin can make large price moves in short periods of time, and trades for different prices in different places at the same time. So bitcoin’s volatility reduces its liquidity in this sense, but not in other …</p>