#交易流动性 What is liquidity?

Liquidity = The market's ability to accommodate your buying and selling demands.

Specifically manifested as:

Are there many buy and sell orders?

Is the slippage high when you buy or sell?

Can your position be quickly executed?

📌 Simple understanding:

Good liquidity = Easy to enter and exit without pressure

Poor liquidity = You push prices up when buying and push prices down when selling, like hurting yourself.