#Liquidity101 #Liquidity101: The Lifeblood of Any Market
What is liquidity and why should every trader care? Let’s break it down 👇
🔹 Liquidity = How easily an asset can be bought or sold without affecting its price.
High Liquidity:
✔️ Tight spreads (buy/sell price gap)
✔️ Fast execution
✔️ Less price volatility
🔸 Examples: Major forex pairs, BTC, ETH, Apple stock
Low Liquidity:
❌ Wide spreads
❌ Slippage (you get a worse price than expected)
❌ Harder to enter/exit positions
🔸 Examples: Low-cap altcoins, penny stocks, rare NFTs
Why It Matters:
More liquidity = less risk when entering or exiting trades
#Liquidity101 #CryptoBasics #TradingTips #MarketMechanics #FinancialEducation #DYOR #ForexTrading #CryptoTrading
