liquidity smile

noun

A feature of many financial markets whereby the volume (and hence liquidity) is concentrated at the start and particularly the end of the trading day, with relatively thin trading in the middle.

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Meanings

nounliquidity smile (plural liquidity smiles)

plural liquidity smiles

  1. economicsA feature of many financial markets whereby the volume (and hence liquidity) is concentrated at the start and particularly the end of the trading day, with relatively thin trading in the middle.
Cite this entry
APA

liquidity smile. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/liquidity%20smile

MLA

“liquidity smile.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/liquidity%20smile. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “liquidity smile,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/liquidity%20smile.

Source: liquidity smile on Wiktionary, CC BY-SA 4.0.