What is market liquidity?
Buyers and sellers with opposing views are matched on the platform. When you want to buy a contract that matches a specified outcome at the prevailing price (e.g. $0.22), the order is sent to the exchange and the platform searches for another user who is willing to take the opposite side of the trade (someone who wants to buy a contract that does not match a specified outcome).
What happens when there is "Insufficient Liquidity"?
When a market has insufficient liquidity, it means there is currently no one offering to match your specific order. In these scenarios:
You may see that no price quotes are available to place a trade.
You will be unable to see a closing price for existing positions, meaning your Unrealized P&L (Profit and Loss) cannot be calculated.
Why is there no liquidity for my match?
There are three common reasons why liquidity might be low or unavailable:
Event Expiry: As the time, where the outcome is determined, approaches (e.g. as a game reaches its final minutes), fewer traders, or none, are willing to take on the less desirable side of a trade.
Match is Live: Trading activity often decreases while an event / a match is in progress.
Can I close my position if there is no liquidity?
If there are no active price quotes from other traders, you cannot close your position immediately. You must wait for another participant to enter the market with a matching price or wait for the event to settle.
Disclaimer: Trading involves risk and may not be appropriate for all. For details on liquidity risks, please refer to the Risk Disclosure Statement. By trading you risk losing all of your money used to enter any transaction, including fees. You should carefully consider whether trading is appropriate for you in light of your investment experience and financial resources. Any trading decisions you make are solely your responsibility and at your own risk.