#Liquidity101 : The Lifeblood of the Market
Ever heard the term liquidity in trading but not sure what it really means? Let’s break it down. 👇
🔹 Liquidity refers to how easily an asset can be bought or sold without causing a major price change.
✅ High liquidity = Fast, smooth trading with minimal slippage (e.g., BTC/USD).
⚠️ Low liquidity = Slower trades, bigger price swings, and higher risk.
💡 Why it matters?
Easier entry and exit from trades
More accurate pricing
Lower spreads and better execution
If you're trading in a low-liquidity market, always manage your risk wisely!
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