™An order for 100 shares may execute near the quote while a 50,000-share order moves through several levels. Liquidity depends on size and conditions.
Orders & Market Structure
Liquidity
The ability to transact without causing a large change in price.
Plain-English context
Put the definition to work.
Daily volume is not the whole measure. Depth, spread, order size, venue and stressed conditions can change tradability.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. FINRA — order types and execution