Liquidity keeps markets flowing! It’s the ease of buying or selling an asset without causing big price swings. Think of it like water in a stream—more water, smoother flow. High liquidity means tight bid-ask spreads and quick trades, like in major forex pairs. Low liquidity? Wider spreads, higher volatility—think illiquid stocks. Central banks, like the Fed, influence liquidity via monetary policy. Understanding liquidity helps traders navigate risks and seize opportunities. Stay liquid, stay sharp! #Liquidity101