💰 #Liquidity101 – The Key to Smooth Market Moves! 💰

Liquidity is all about how easily an asset can be bought or sold without significantly affecting its price. The higher the liquidity, the smoother the transaction! Here's a quick breakdown:

🔹 High Liquidity – More buyers & sellers, tighter bid-ask spreads, faster execution. Think major stocks & forex.

🔹 Low Liquidity – Fewer market participants, wider spreads, potential price swings. Common in small-cap stocks & niche assets.

🔹 Why It Matters – Liquidity affects trade efficiency, price stability, and investment flexibility.

Always consider liquidity before making a move! 🚀