Liquidity

Liquidity asks whether a position can be converted to usable money, in the required amount and time, at an acceptable cost. A quoted last price and a high asset value do not establish that ability. Orders, settlement delays, exit penalties and available buyers matter. Compare the size you need to sell with market depth. A property can retain a valuation while taking months to sell; a security can stop trading despite a familiar ticker.

Worked example (hypothetical)

The best bid covers 50 units at 1,000 rial and the next bid 150 at 980. Selling 200 units across both gives 197,000 rial, an average 985, before costs and execution changes.

Check your understanding

Can a price feed tell you the settlement date? Usually not. Check the venue’s settlement and withdrawal rules separately.

Sources, reviewed 5 October 2026

• Investment Products
• Types of Orders