#Liquidity101 Liquidity refers to the ability to buy or sell an asset quickly and at a stable price. Key aspects:

- *High Liquidity*: Many buyers and sellers, tight bid-ask spreads

- *Low Liquidity*: Few buyers and sellers, wider bid-ask spreads

- *Market Impact*: Large trades can significantly impact prices in illiquid markets

Liquidity is crucial for traders, as it affects:

- *Trade Execution*: Ability to enter or exit positions

- *Price Stability*: Reduced risk of large price swings...