BizTerm Definition
Liquidity position
Full Definition

The liquidity position is the difference between the sum of liquid assets and incoming cash flows on one side and outgoing cash flows resulting from commitments on the other side, measured over a defined period, being the measure of the liquidity risk. Related position codes are: 1. Liquidity position -spot. 2. Liquidity position - forward. The related report is the Liquidity Risk Analysis report. Two position codes are defined, one for the spot time bracket and one for the forward time brackets. See also Position, position administration tables, standard position codes, combined position code, risk management, foreign exchange risk, forex, open currency position, mismatch, interest risk, liquidity risk, forward revaluation, interest revaluation, break even and nostro projection.

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