Time-zone analysis of currency liquidity: Deteriorating market depth can create a significant drag on bottom-line returns, especially for larger investors (Optimal execution and deep liquidity). In an asset class that is traded around the clock, understanding that liquidity varies greatly by currency and time of day can be very useful in managing slippage when executing orders. We conducted time-zone analysis of functional liquidity by currency to determine the optimal time of day to transact to minimize slippage (Chart of the day: Optimal Execution by Time of Day). Our two measures of liquidity are bid-ask spread ... (full story)