📊 liquidity: Why It Matters in Trading 💡
Liquidity plays a critical role in how efficiently your trades are executed. It refers to how easily an asset can be bought or sold without causing major price changes.
🚨 Low liquidity = High risk
In thin markets, you may face:
– 🔻 Slippage
– 💸 Poor price execution
– ❌ Failed orders
Especially during high volatility, this can make or break your trade.
💬 Think about it:
· What is liquidity and how does it affect your trade outcomes?
· How do you check an asset’s liquidity before entering a trade?
· What tricks do you use to reduce slippage?
📉 Quick Tips:
✔️ Use limit orders over market orders
✔️ Check order book depth and volume
✔️ Avoid trading during major news spikes unless confident
Let’s talk about your experience navigating liquidity traps ⤵️