#Liquidity101 📊 : Basic Information about Market Liquidity**

Market liquidity is a fundamental concept in trading, as it determines how easily an asset can be bought or sold without significantly affecting its price. A market with high liquidity has a large volume of transactions and a narrow difference between the buy and sell prices (spread), which favors quick and efficient executions. In contrast, in markets with low liquidity, transactions can become more costly and slow due to lower activity.

On platforms like Binance, liquidity is a key pillar, providing users access to deep and competitive markets. Understanding this concept is essential for making informed decisions and optimizing investment strategies.

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