What is Tradeability?
Whether the *current* market microstructure can absorb your size at acceptable slippage.
Definition
Tradeability (HIGH / MED / LOW) is a microstructure score that combines liquidity depth, current bid-ask spread, time-of-day session weight, recent realised vol, and any active kill-switches. It is independent of bias *direction* — it answers "if I want to take this trade, can I, and at what cost?".
Why it matters for trading
- Bias and tradeability are orthogonal. Strong directional conviction in a thin-liquidity window is a worse trade than weak conviction in deep liquidity.
- Tradeability gates the size, not the direction. A HIGH-conviction long in a LOW tradeability window should run smaller than a MED-conviction long in HIGH tradeability.
- It catches the "right idea, wrong moment" mistake — Asian session FX scalps, off-hours commodities, post-CPI-print spread blowouts.