Time to liquidate

Time to liquidate, or days to liquidate, estimates how long a position would take to sell. For a listed security, it is usually position size divided by a fixed share of average daily volume. For a fund it depends on dealing frequency, notice periods and gates.

Policies use it to test whether enough of the portfolio can be raised in time. Typical wording is “at least 25% of the portfolio available within 30 days”. That is the same as at most 75% needing more than 30 days.

Acclimetry’s time-to-liquidate limit reads an approved days-to-liquidate field and counts only holdings strictly beyond the horizon. Example: with a five-day horizon, a holding at 5 days does not count, but 200 at 30 days is 20% of a 1,000 portfolio. A holding with no estimate is a data gap, never assumed liquid.