#Liquidity101

In the world of trading and investment, liquidity is one of the important factors that must be understood before making a transaction. Liquidity measures how easily an asset can be bought or sold without causing significant price changes. The higher the liquidity, the faster and easier transactions can be executed. Markets with high liquidity, such as major currency pairs in forex or popular assets in crypto, tend to have smaller spreads and stable price movements. Conversely, assets with low liquidity are usually harder to sell and are susceptible to price spikes. Understanding this concept will help traders determine the right strategy and avoid unexpected risks when the market is volatile. 📊💸

#Liquidity101