#Liquidity101 💧 #Liquidity101 — Why It Matters in Trading & Investing 📊

What is Liquidity?

Liquidity = how easily you can buy or sell an asset without impacting its price.

🔹 High Liquidity =

✅ Fast transactions

✅ Tight bid-ask spreads

✅ Stable prices

Examples: Large-cap stocks (AAPL, MSFT), major forex pairs (EUR/USD)

🔹 Low Liquidity =

⚠️ Slower execution

⚠️ Bigger price swings

⚠️ Higher slippage

Examples: Penny stocks, low-volume cryptos, niche NFTs

🧠 Why You Should Care:

If you’re stuck holding an illiquid asset, you might have to sell lower than expected—or not at all.

🚀 Pro Tip: Always check volume and spread before entering a trade!

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