#SOLETFsOnTheHorizon When deciding whether to choose a financial instrument, you will want to look at three factors.
Liquidity – Liquidity allows you to quickly enter and exit stocks or currency pairs. More liquidity means more ability to buy and sell with less slippage and tighter spreads.
Volatility – This is how much an asset’s price fluctuates on a given day. More volatility means more potential profit, but also more exposure to the risk of losing capital.
Trading volume – This is the number of trades on an asset traded each day, indicating the amount of demand for the financial asset. Higher trading volume means there is more interest in that asset.