Resiliency

Definition

Resiliency in plain English

Resiliency is about how fast a market "heals" after a big trade knocks the price out of place. Picture pushing your finger into a memory-foam mattress: a resilient market springs back to its normal shape quickly, while a sluggish one stays dented. When someone dumps a large order for reasons that have nothing to do with the stock's real value (say, they just needed cash), the price gets temporarily shoved — resiliency measures how quickly fresh buyers and sellers step in to push it back to where it belongs. High resiliency means the market absorbs shocks well and prices don't stay distorted for long.

Related Market Microstructure terms

• Amihud Illiquidity Measure
• Ask (Offer)
• Bid
• Bid–Ask Bounce
• Bid–Ask Spread
• Dealer
• Depth
• Effective Spread
• Inventory Risk
• Lee–Ready Algorithm