#交易流动性

And has a profound impact on the entire market:

1. **Execution Efficiency and Costs:**

* **High Liquidity:** Ensures your trades (whether buying or selling) can be executed quickly and at prices close to your expectations, reducing **slippage** (the difference between the actual execution price and the expected price). Lower trading costs (including spreads).

* **Low Liquidity:** Large slippage is likely to occur, trading costs are higher, and it may even be impossible to complete trades at expected prices.

2. **Price Discovery and Stability:**

* **High Liquidity:** There is a large amount of trading activity in the market, and the competition between buyers and sellers is more robust, which helps to form a more fair and accurate market price, reflecting the fair value of the asset. Price fluctuations are relatively stable.

* **Low Liquidity:** Even small trades can lead to dramatic price fluctuations, resulting in inefficient price discovery and susceptibility to manipulation by large players.

3. **Market Attractiveness:**

* **High Liquidity:** Attracts more traders and investors to participate, as they know they can enter and exit the market at any time, reducing investment risks and uncertainty. This, in turn, further enhances liquidity and creates a positive feedback loop.