#Liquidity101 Liquidity101 Liquidity refers to the ability to buy or sell an asset quickly and at a stable price. In trading, liquidity is crucial as it affects the ease of entering or exiting a position.

*Key aspects of liquidity:*

- *Market depth:* The number of buy and sell orders at different price levels.

- *Trading volume:* The amount of assets traded over a specific period.

- *Bid-ask spread:* The difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask