#Liquidity101

Liquidity101: Why It Matters in Trading 💡

Liquidity isn’t just a buzzword — it’s the lifeblood of every market. Whether you're trading crypto, stocks, or forex, liquidity determines how easily you can enter or exit a position without slippage.

🔍 In simple terms: Liquidity = How quickly you can buy/sell an asset without impacting its price too much.

🟢 High liquidity = Tight spreads, fast execution, minimal price movement

🔴 Low liquidity = Bigger spreads, price swings, delayed fills

📈 Why liquidity matters:

Better pricing for your trades

Less volatility and risk

More efficient and fair markets

⚠️ Pro tip: Always check an asset’s volume and order book depth before trading — especially in crypto, where liquidity can vary wildly.

Mastering liquidity = mastering smarter, safer trades.

Stay sharp. Trade smart. 💡