#Liquidity101

**What is Liquidity? 💧**

Liquidity measures how easily an asset can be converted to cash **without significant loss**.

**High Liquidity:**

→ Assets like stocks (Apple, Tesla) or major currencies (USD, EUR).

→ Many buyers/sellers → quick sale near market price.

→ Tight bid-ask spreads (low transaction cost).

**Low Liquidity:**

→ Assets like real estate or rare collectibles.

→ Fewer buyers → selling takes time/requires price cuts.

→ Wide bid-ask spreads (high cost to trade).

**Why it matters:**

✅ High liquidity = flexibility & price stability.

❌ Low liquidity = risk of loss if forced to sell fast.

**Key Takeaway:** Liquidity is your exit ramp speed.

\#Finance #Investing #Trading #markets