Generally in case of a liquid market,
it is not highly volatile.
the fluctuations of the market is limited and
it is mainly stable and predictable.
One can convert assets without much fluctuation of costs.
The spread here is always low between the selling and the asking prices.Generally,
money market securities,
government bonds are considered liquid assets which can be easily converted into cash.
It is opposite in character of the thin market which highly depends on the supply chain demand.