Liquidity is the ability to buy or sell an asset at a stable and rapid price. High liquidity allows traders to buy or sell assets at better and faster prices.

There are several factors that influence liquidity, such as trading volume, the number of market participants, and the availability of information. Therefore, it is important to understand market liquidity before trading.

Low liquidity can cause asset prices to become unstable and increase the risk of loss. Therefore, it is important to choose assets that have high liquidity and understand trading strategies that are appropriate for market conditions. #Liquidity101