Liquidity risk

The risk that arises from the difficulty of selling an asset. It can be thought of as the difference between the "true value" of the asset and the likely price, less commissions. The New York Times Financial Glossary

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   The risk a dealer has of not being able to unwind a position or enter into a position at a desired point of time because there is not enough market volume or a lack of willing counter parties.

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liquidity risk UK US noun [C or U]
FINANCE the degree to which it may not be possible to sell an investment easily in order to get cash: »

These long-term investments mean we have a higher liquidity risk, but this is more than offset by the higher yield.


Financial and business terms. 2012.

Look at other dictionaries:

  • Liquidity risk — In finance, liquidity risk is the risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit).Types of Liquidity Risk#Asset Liquidity An asset cannot be sold due to lack of… …   Wikipedia

  • liquidity risk — (1) For a financial institution, the risk that not enough cash will be generated from either assets or liabilities to meet cash requirements. For a bank, cash requirements are primarily made up of deposit withdrawals or contractual loan fundings …   Financial and business terms

  • Liquidity risk —   The risk of non availability of sufficient liquidity to meet cash flow requirements on a certain date in the future including today (having sufficient available or inflow of funds to accommodate outflow of funds). Also known as funding risk.… …   International financial encyclopaedia

  • liquidity risk — likvidumo rizika statusas Aprobuotas sritis kredito ir finansų įstaigos apibrėžtis Tikimybė, kad dėl lėšų trūkumo elektroninių pinigų ir mokėjimo įstaigos įsipareigojimams vykdyti teks parduoti elektroninių pinigų ir mokėjimo įstaigos turtą arba… …   Lithuanian dictionary (lietuvių žodynas)

  • liquidity risk — likvidumo rizika statusas Aprobuotas sritis draudimas apibrėžtis Rizika, kad draudimo ar perdraudimo įmonė nesugebės susigrąžinti investuotų lėšų ir realizuoti turto, kad įvykdytų savo finansinius įsipareigojimus suėjus terminui. atitikmenys:… …   Lithuanian dictionary (lietuvių žodynas)

  • Liquidity Risk — The risk stemming from the lack of marketability of an investment that cannot be bought or sold quickly enough to prevent or minimize a loss. Usually reflected in a wide bid ask spread or large price movements …   Investment dictionary

  • liquidity risk — The risk, in lending operations, that an investment cannot be liquidated during its life without significant costs …   Accounting dictionary

  • liquidity risk — The risk, in lending operations, that an investment cannot be liquidated during its life without significant costs …   Big dictionary of business and management

  • Liquidity Risk — (риск ликвидности) риск того, что в случае продажи активов, как правило финансовых, количество потенциальных покупателей будет ограничено …   Ипотека. Словарь терминов

  • Liquidity risk report —   A position report which gives information about the liquidity risk per currency versus limits. The liquidity risk is the risk of non availability of sufficient liquidity.   Related positions are:   Capital & P&L.   C/A Nature.   B/S Difference …   International financial encyclopaedia

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