#Liquidity101

How Liquidity Affects Price Execution:

High liquidity = tighter bid-ask spreads, minimal slippage

Low liquidity = wider spreads, large slippage, delayed execution

In volatile markets, low liquidity can make or break your trade.

Factors influencing liquidity: Trading volume, order book depth, and the popularity of the asset.

Low liquidity: Can result in delayed trades and wider price fluctuations, potentially impacting your trades.