#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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