> An illiquid asset cannot be liquidated without slippage - that's why there's a liquidity premium. We agree here. > Those are the same thing. We disagree he

> An illiquid asset cannot be liquidated without slippage - that's why there's a liquidity premium. We agree here. > Those are the same thing. We disagree here. "In economics, a liquidity premium is the explanation for a difference between two types of financial securities (e.g. stocks), that have all the same qualities except liquidity." [0] "With regard to futures contracts as well as other financial instruments, slippage is the difference between where the computer signaled the entry and exit for a trade and where actual clients, with actual money, entered and exited the market using the computer’s signals." The concepts are related, but not identical. [0] https://en.wikipedia.org/wiki/Liquidity_premium https://en.wikipedia.org/wiki/Liquidity_premium [1] https://en.wikipedia.org/wiki/Slippage_%28finance%29 https://en.wikipedia.org/wiki/Slippage_%28finance%29