Zeroliquidity
Zeroliquidity refers to a hypothetical state within financial markets where an asset has no active buyers or sellers willing to trade at any price. This means that no transaction can occur because there is an absence of counterparties. In practical terms, it signifies a complete breakdown of market functionality for a particular asset.
This scenario is distinct from low liquidity, where trading may be slow or involve wide bid-ask spreads.
While true zeroliquidity is rare, events that approach this condition can arise during severe market crises,