Definition ∞ Market hours liquidity refers to the ease with which an asset can be bought or sold during standard trading hours without significantly affecting its price. This metric is crucial for traditional financial markets and is increasingly relevant for tokenized assets that trade on regulated exchanges. High liquidity indicates robust trading activity and tight bid-ask spreads, allowing for efficient order execution.
Context ∞ For digital assets that bridge traditional finance, understanding market hours liquidity is important for assessing their integration into existing financial infrastructures. The discussion often highlights the challenges of achieving consistent liquidity across various time zones and trading venues, especially for less common tokenized securities. Regulatory frameworks are evolving to address the unique characteristics of 24/7 crypto markets intersecting with traditional market hours.