#Liquidity101 Liquidity is the ease of buying or selling an asset without large price variations. High liquidity means that your orders are filled quickly and with less slippage (the difference between expected and executed price), resulting in more stable markets and lower transaction costs.

Binance contributes to this liquidity through its vast user base, incentives for market makers (who provide liquidity), and a robust technological infrastructure. Understanding liquidity is essential for optimizing your trades, ensuring that you can enter and exit positions efficiently, with minimal impacts on price.