To say that the forward market lacks liquidity means that

Question

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Liquidity refers to the ease with which an asset can be bought or sold in a market without significantly impacting its price. If a market lacks liquidity, it means that it may be difficult to find a counterparty willing to participate in the transaction, resulting in a higher bid-ask spread and potential price impact. This may be the case in the forward market, especially for less commonly traded assets or where there is uncertainty about future prices. It does not necessarily mean that forward contracts result in losses or cannot be turned into cash.

To Say That the Forward Market Lacks Liquidity Means That