#Liquidity101

Liquidity refers to the ease of converting an asset into cash without a significant loss in its value. In other words, it is your ability to buy or sell an asset quickly and smoothly without affecting its price.

Liquidity is the backbone of successful financial markets:

- For the investor: it provides flexibility for quick entry and exit.

- For the company: it ensures its continuity by meeting its obligations.

- For the market: it maintains price stability and reduces costs.

> ✅ Final tip: Focus on highly liquid assets (such as large stocks or currencies) if you are a beginner to avoid the risks of default.