#Liquidity101 plays a crucial role in determining the efficiency and speed of trade execution. In this article, we will discuss the concept of liquidity, its importance, and how to assess it on the Binance platform.

---

What is liquidity?

Liquidity refers to how easily and quickly a financial asset can be bought or sold without significantly affecting its price. In high liquidity markets, there are a large number of buyers and sellers, which facilitates the execution of trades quickly and at stable prices. In contrast, in low liquidity markets, executing a large trade may lead to noticeable changes in price.