#Liquidity101
Understanding Liquidity
Liquidity refers to the ability to buy or sell assets quickly and at a fair price. In financial markets, liquidity is crucial as it determines how easily you can enter or exit a trade without significantly impacting the market price.
Key Aspects of Liquidity:
Market Depth: The ability to buy or sell large quantities of an asset without significantly impacting its price.
Traders need to get the market impression very quick .