Definition
Liquidity
The depth of resting orders on either side of the book.
Liquidity
Market liquidity is the depth of resting orders on either side of the book. In a CLOB market like Polymarket, liquidity is the aggregate size available at displayed prices — effectively how much you can buy or sell immediately without moving the midpoint significantly.
In context
On Polymarket the Gamma /markets endpoint exposes a liquidity sort key you can use when listing markets. That field reflects the depth of the order book and is useful when scanning for tight books where slippage and partial fills are less likely. Higher liquidity typically means you can execute larger trades at or near the midpoint; lower liquidity increases the risk of price impact and partial execution.
When you evaluate liquidity remember two practical limits: tick size and maker/taker dynamics. Tick size (usually $0.01, narrowing to $0.001 near price extremes) constrains price granularity, and maker fees are zero on Polymarket which can encourage displayed depth. However, taker fees vary by category and can affect effective execution cost.
See also
- /glossary/spread