The Relationship Between Portfolio Turnover and Liquidity

The Relationship Between Portfolio Turnover and Liquidity

Without question, in trading, the concepts of portfolio turnover and liquidity intertwine, shaping investment strategies and outcomes. Portfolio turnover measures the frequency of buying/selling securities in a portfolio, while liquidity gauges the ease of converting assets into cash swiftly and with minimal price impact. Understanding the relationship between these two is paramount for investors. High…