#Liquidity101 Liquidity refers to how easily an asset can be bought or sold without affecting its price
Types of Liquidity:
1. High Liquidity
Easy to buy/sell quickly.
Small price impact.
Example: Major stocks, large cryptocurrencies.
2. Low Liquidity
Harder to trade.
Bigger price changes when buying/selling.
Example: Penny stocks, niche assets.
Why Liquidity Matters:
Faster trades
Better prices (tight spreads)
Lower risk of slippage