#Liquidity101 Liquidity is one of those hidden forces that can make or break your trade — yet many new traders overlook it.
🌀 In simple terms, liquidity is about how quickly and easily an asset can be bought or sold without causing major price changes.
Here’s why It matters:
✅ High liquidity = Tighter spreads, faster execution, less slippage.
⚠️ Low liquidity = Bigger spreads, delayed execution, unexpected price impact.
It affects:
Your entry and exit speed
How accurate your stop-loss or take-profit levels will be
Your overall trading costs
Before entering any trade, I now ask: “Is there enough liquidity here?” — because even the best strategy can fail in an illiquid market.
Great topic by Binance! Understanding liquidity isn’t just technical — it’s tactical.
