#Liquidity101
What Is Liquidity in Trading?
#Liquidity101
Liquidity = How easily you can buy or sell an asset without affecting its price.
📊 High Liquidity
✅ Tight spreads
✅ Fast order execution
✅ Less slippage
✅ More market participants
(Think: BTC, ETH, major stocks)
💤 Low Liquidity
⚠️ Wide spreads
⚠️ Delayed execution
⚠️ Price jumps
⚠️ Risk of being “stuck” in a trade
(Think: small-cap coins or penny stocks)
🧠 Pro Tip: High liquidity = smoother trading. Always check volume before jumping in.
Have you ever been stuck in a low-liquidity asset? Share your experience 👇
