Third-Party(Trading)EXchanges market liquidity The degree to which something can be bought or sold in a marketplace without affecting its price. It is measured by the number of buyers and sellers in the market and the transaction volume Electronic Commerc Prentice Hall 2006 3Electronic Commerce Prentice Hall © 2006 13 Third-Party (Trading) Exchanges market liquidity The degree to which something can be bought or sold in a marketplace without affecting its price. It is measured by the number of buyers and sellers in the market and the transaction volume