Liquity101

This is a general announcement. Products and services referred to here may not be available in your region.
Fellow Binancians,
From 2025-06-03 to 2025-07-07, the Futures Showdown Live Trading Competition on Binance Square is open to top traders, rising talent, and livestreaming pros to compete for a share of the $50,000 prize pool. 
Futures Showdown is a live trading competition for traders and creators on Binance Square as part of Binance Traders League Season 2. It’s a chance to build your audience, demonstrate your strategies live on Binance Square, and earn recognition across the community.
Learn more about the Live Trading Competition
How to Participate:
Competition Period: 2025-06-03 13:00 (UTC) to 2025-07-07 23:59 (UTC)
To qualify for ranking on the weekly leaderboard, users must meet all the requirements below. 
Streaming Requirements:
Host a minimum of 3 livestreams per week on Binance Square (audio live or livesteaming).
Each stream must be at least 60 minutes long
Each stream must reach a minimum of 500 listens
Achieve a USDⓈ-M Futures trading volume of at least $100,000 during the Competition Period.
Note: Rankings will only be assigned once the user meets or exceeds the minimum trading volume.
Fully configure their Binance Square accounts, including adding username, nickname, bio and photo.
The weekly leaderboard will highlight the top performers and displayed on the Binance Square Official page.
Reward Structure:
1. Top Trading Volume — $35,000 in Rewards
The top 10 participants with the highest USDⓈ-M Futures trading volume achieved by users in livestreams during the Competition Period will share the $35,000 prize pool, as per the reward structure below. 
1st: $10,000
2nd: $7,000
3rd: $5,000
4th: $4,000
5th: $3,000
6th: $2,000
7th: $1,500
8th: $1,000
9th: $750
10th: $750
2. Top Futures Referrals – $15,000 in Rewards
The top 5 participants who refer the highest number of new traders to Binance Futures will share the $15,000 prize pool, as per the reward structure below.
1st: $5,000
2nd: $4,000
3rd: $3,000
4th: $2,000
5th: $1,000
More Information:
LIVE on Binance Square: Your Ultimate Guide 
What is Live Trading on Binance Square and How Does It Work
Terms and Conditions:
This campaign may not be available in your region.
Eligibility:
To qualify for ranking, participants must meet all the requirements: host a minimum of 3 livestreams per week on Binance Square (audio live or livesteaming); each stream must be at least 60 minutes long and must reach a minimum of 500 listens. 
Participants must also achieve a USDⓈ-M Futures trading volume of at least $100,000 during the Competition Period to qualify for ranking. Rankings will only be assigned once the participant meets or exceeds the minimum trading volume.
Users must have a fully configured Binance Square account, which includes a properly set up username, nickname, bio and a profile picture, to be eligible for any reward.
Winners will be notified via push notifications under Creator Center > Square Assistant. 
Rewards will be distributed within 45 working days after the activity ends in Funds > Funding Account.
Illegally bulk registered accounts or sub-accounts shall not be eligible to participate or receive any rewards. 
Binance reserves the right to disqualify any account acting against the Binance Square Community Guidelines or Terms and Conditions.
Binance reserves the right at any time in its sole and absolute discretion to determine and/or amend or vary these terms and conditions without prior notice, including but not limited to canceling, extending, terminating or suspending this activity, the eligibility terms and criteria, the selection and number of winners, and the timing of any act to be done, and all participants shall be bound by these amendments.
Binance reserves the right of final interpretation of this activity.
Additional promotion terms and conditions can be accessed here.
There may be discrepancies between this original content in English and any translated versions. Please refer to the original English version for the most accurate information, in case any discrepancies arise.
Thank you for your support!
Binance Team
2025-06-03
#Liquity101

#Liquity101
**Liquidity 101: Understanding the Basics**

Liquidity refers to how easily an asset can be converted into cash (or another asset) without significantly affecting its price. High liquidity means an asset can be bought or sold quickly with minimal price impact, while low liquidity means it may take longer or require a price discount to sell.
**Types of Liquidity**
1. **Market Liquidity** – How easily an asset can be traded in a market (e.g., stocks, cryptocurrencies, real estate).
- *Example:* A heavily traded stock like Apple (AAPL) is highly liquid, while a rare collectible may be illiquid.

2. **Accounting Liquidity** – A company’s ability to pay short-term debts using its current assets (cash, receivables, inventory).
**Why Liquidity Matters**
✅ **Flexibility** – Liquid assets can be sold quickly in emergencies.
✅ **Lower Risk** – Less chance of price slippage when trading.
✅ **Economic Stability** – Markets function better when assets can be traded efficiently.
**Measuring Liquidity**
**For Assets/Markets:**
- **Trading Volume** – Higher volume usually means better liquidity.
- **Bid-Ask Spread** – Narrow spreads indicate high liquidity.
- **Market Depth** – Large order books suggest strong liquidity.
**For Companies:**
- **Current Ratio** = Current Assets / Current Liabilities (≥1 is good)
- **Quick Ratio** = (Current Assets – Inventory) / Current Liabilities (excludes less liquid inventory)
**Examples of Liquidity**
| Asset | Liquidity Level |
| Cash (USD) | Highest |
| Blue-Chip Stocks (e.g., Amazon) | High |
| Real Estate | Low (takes time to sell) |
| Small-Cap Stocks | Medium (lower trading volume) |
| Cryptocurrencies (e.g., Bitcoin) | Varies (BTC high, altcoins often low) |
**Illiquidity Risks**
⚠ **Price Impact** – Selling illiquid assets may require big discounts.
⚠ **Market Freezes** – In crises, even normally liquid assets can become hard to sell.
⚠ **Company Bankruptcy** – Firms with poor liquidity may fail to pay debts.
**Final Thoughts**
Liquidity is crucial for investors, businesses, and economies. Understanding it helps in making better financial decisions—whether trading stocks, evaluating a company, or managing personal finances.

Would you like a deeper dive into any specific aspect of liquidity?