#Liquidity101 #Liquidity101

Liquidity refers to how easily an asset can be bought or sold in the market without affecting its price. In trading, high liquidity means many buyers and sellers are active, allowing smooth and quick transactions. Low liquidity leads to price slippage and difficulty in entering or exiting trades. In Forex and crypto, major pairs or coins like EUR/USD or BTC/USDT are highly liquid. Smart traders look for liquidity pools—areas where stop-losses or pending orders accumulate—as potential price targets. Understanding liquidity helps in predicting market moves, managing risk, and executing better trades. It’s a key concept in SMC and ICT trading strategies.