#Liquidity101
Liquidity is the lifeblood of the market. Without it, trading becomes slow, prices slip, and large trades cause chaos.
Those who ignore liquidity enter a currency thinking they are winning, but they can’t sell without a massive loss.
Liquidity means the ability to enter and exit a trade without significantly impacting the price. Currencies with high liquidity mean better trading opportunities, tighter spreads, and faster execution.
Don’t be tempted by the numbers… Always ask: Is there real liquidity?
Before you buy, check the trading volume, market depth, and number of orders.
#Liquidity101 – You only notice liquidity when you need it.