#Liquidity101 *Liquidity 101: Understanding Market Liquidity*

Liquidity refers to how easily an asset can be bought or sold without affecting its price. Here's what you need to know:

- *High Liquidity*: Many buyers and sellers, tight bid-ask spreads, and minimal price impact.

- *Low Liquidity*: Few buyers and sellers, wide bid-ask spreads, and significant price impact.

High liquidity provides flexibility and reduces trading risks. Understanding liquidity is crucial for traders and investors to make informed decisions. What assets do you trade or invest in? Do you prioritize liquidity in your strategy? Share your thoughts! 💸📊 #Liquidity #Trading #Investing