#Liquidity101
*Liquidity in Trading*
Liquidity is the ability of the market to buy or sell assets quickly and easily without significantly affecting the price. It is a key element in successful trading.
*Why is liquidity important?*
- Enhances market efficiency
- Reduces risks
- Improves profit opportunities
*Types of liquidity:*
- Market liquidity
- Asset liquidity
- Funding liquidity
*Understanding liquidity is the key to success in trading!*