💧 #Liquidity101 – Why It Matters More Than You Think

Ever placed a trade and got a worse price than expected? That’s slippage—and it’s usually due to low liquidity. Let’s break it down 👇

🔹 What is Liquidity?

It’s how easily you can buy or sell an asset without moving the price too much.

✅ High liquidity = smooth, stable trades

❌ Low liquidity = big price jumps, delays, or failed orders

📊 How I check liquidity:

🔍 Look at trading volume

🔍 Check order book depth

🔍 Compare spreads (tight = better)

🛡️ Slippage Protection Tips:

💡 Use limit orders, not market orders

💡 Avoid trading during high volatility news events

💡 Break up large trades into smaller ones

Liquidity is often overlooked—but it can make or break your trade.