Liquidity Gap

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Dictionary Says

Definition of 'Liquidity Gap'

The difference between a firm's assets and a firm's liabilities, caused by said assets and liabilities not sharing the same properties. This gap can be positive or negative, depending on if the firm has more assets than liabilities or vice versa.
Investopedia Says

Investopedia explains 'Liquidity Gap'

For banks, the liquidity gap can change over the course of the day as deposits and withdrawals are made. This means that the liquidity gap is more of a quick snapshot of a firm's risk, rather than a figure that can be worked over for a long period of time. To compare periods of time banks, calculate the marginal gap, which is the difference between gaps of different periods.

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'Liquidity Gap'

  • Playing The Gap

    http://www.investopedia.com/articles/trading/05/playinggaps.asp
    ... forex market. This does not look like a regular gap, but the lack of
    liquidity between the prices makes it so. Notice how these ...

  • When to Favor Options Over Stocks

    http://stocks.investopedia.com/stock-analysis/moneyshow/WhentoFavorOptionsOverStocks.aspx
    ... dollar risk, as a major headline can bring tremendous gap trading potential. ... However,
    liquidity is often inferior compared to common stock, options can’t be ...

  • Speculating With Exchange-Traded Funds

    http://www.investopedia.com/articles/exchangetradedfunds/11/speculating-with-etfs.asp
    ... Major ETFs provide good liquidity, and therefore good price discovery - high trading ...
    and another, the speculator should be prepared to capitalize on the gap. ...

  • Cashing In On The Venture Capital Cycle

    http://www.investopedia.com/articles/07/VC_cycle.asp
    ... From "A" Round to Exit Assuming the funding gap is overcome, the fledgling ... when a
    company has proven its early stage viability to exit - a liquidity event such ...

  • Energy Sector - Third Quarter 2011 Issues

    http://stocks.investopedia.com/stock-analysis/2011/Energy-Sector---Third-Quarter-2011-Issues-CHK-LUFK-NFG-SLB-NFX-PTEN-XES-XOP1014.aspx
    ... that some exploration and production companies may not have the liquidity to fund ...
    either because the economics don't make sense or the funding gap increases to ...

  • Get A Short-Term Advantage In The Money Market

    http://www.investopedia.com/articles/pf/06/shorttermmoneymarket.asp
    ... The money market is a market that provides liquidity for individuals and institutions
    by dealing in short-term borrowing such as certificates of deposit, T ...

  • The Forex Three-Session System

    http://www.investopedia.com/articles/forex/08/3-market-system.asp
    ... With a considerable gap between the close of the US markets and open of the Asian
    trading, a lull in liquidity sets the close of New York exchange trading at ...

  • Introduction to Types of Trading: Technical Traders

    http://www.investopedia.com/articles/trading/02/091802.asp
    ... for stocks of a certain classification (eg stocks within a certain range of liquidity
    or market ... Gap Analysis A gap occurs when the opening price of a stock is ...

  • Forex: Should You Be Trading Trend Or Range?

    http://www.investopedia.com/articles/forex/05/050505.asp
    ... Liquidity By nature, trend trading generates far more losing trades than winning
    trades and ... a day five days a week, eliminating much of the gap risk found in ...

  • Short Selling Risk Can Be Similar To Buying Long

    http://www.investopedia.com/articles/stocks/08/short-selling-risk.asp
    ... Under normal market conditions - when stock spreads are low and liquidity is present -
    the ... real risk here for a short seller is a possible upside gap that he ...

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