#Liquidity101
#Liquidity101 — Why It Really Matters in Trading 💡
Liquidity isn’t just some fancy term — it’s what keeps markets moving smoothly. Whether you’re trading crypto, stocks, or forex, liquidity tells you how easy it is to get in and out of a trade without your price jumping around.
Simply put: liquidity = how fast you can buy or sell without messing up the price.
🟢 High liquidity means tight spreads, quick trades, and little price impact.
🔴 Low liquidity? Expect wider spreads, price swings, and maybe delayed orders.
Why care? Because good liquidity means better prices, less risk, and fairer markets overall.
⚠️ Pro tip: Always check trading volume and order book depth before you jump in — especially in crypto where liquidity can change fast.
Master liquidity, and you’re trading smarter, not harder.
Stay sharp, trade smart!