Trading

Exit Liquidity

Buyers who purchase at high prices, letting earlier insiders sell out at a profit.

Every seller needs a buyer. When early investors or scheme operators want to cash out a large position, they need fresh money flowing in to absorb it without crashing the price. Those late buyers are the exit liquidity.

The term is almost always an insult. If you're buying the top of a pump while insiders dump, you are the exit liquidity. Pump-and-dumps and rug pulls run on it.

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