Days to liquidate
Definition · Level 8 · Risk & portfolio
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Position size divided by the volume you can trade per day without moving the price (often 10–25% of ADV).
Example
750k shares, ADV 1M, 15% participation → 5 days.
Where Tradecraft teaches it
Level 8 · Risk & portfolio, in the lesson “Exposure, leverage & liquidity”: Gross vs net, leverage, beta-adjusted exposure, beta hedging with futures, concentration and days to liquidate.
Related terms
- Beta hedgeShorting index futures or an index ETF with notional = portfolio value × β to neutralize (estimated) market exposure; stock-specific risk stays on.
- Beta-adjusted exposureEach position’s dollar value times its beta, summed — the book’s estimated market sensitivity in index-equivalent dollars.
- Concentration riskHaving too much riding on one name, sector, factor or counterparty, so a single event can do outsized damage.
- Gross exposureLong market value plus the absolute value of short market value; total capital at work.
- Liquidity riskThe danger that a position can’t be exited (or funded) quickly without a big price concession — spreads widen and depth vanishes exactly in stress.
- Net exposureLong market value minus short market value; the book’s directional tilt.