What is tradability?

Tradability refers to the ease and frequency with which a particular asset can be bought and sold in a market. A high degree of tradability means that an asset can be easily bought or sold with little effect on the asset's price. Some factors that affect the tradability of an asset include its market liquidity, the frequency of market transactions, and the size and depth of the market. Highly tradable assets are typically more desirable to investors, as they allow for greater flexibility and the ability to quickly respond to changes in market conditions. Examples of highly tradable assets include stocks, bonds, and currencies. On the other hand, assets with low tradability, such as illiquid private investments, may be more difficult to buy or sell and may require longer holding periods.