📊 liquidity: Why It Matters in Trading 💡

Liquidity plays a critical role in how efficiently your trades are executed. It refers to how easily an asset can be bought or sold without causing major price changes.

🚨 Low liquidity = High risk

In thin markets, you may face:

– 🔻 Slippage

– 💸 Poor price execution

– ❌ Failed orders

Especially during high volatility, this can make or break your trade.

💬 Think about it:

· What is liquidity and how does it affect your trade outcomes?

· How do you check an asset’s liquidity before entering a trade?

· What tricks do you use to reduce slippage?

📉 Quick Tips:

✔️ Use limit orders over market orders

✔️ Check order book depth and volume

✔️ Avoid trading during major news spikes unless confident

Let’s talk about your experience navigating liquidity traps ⤵️

#Liquidity