#Liquidity101
💧 #Liquidity101 – What Is Liquidity in Finance?
🔹 Definition:
Liquidity refers to how easily and quickly an asset can be bought or sold in the market without affecting its price.
---
💡 Types of Liquidity
1. Market Liquidity
How easily assets (like stocks, crypto, real estate) can be traded.
High liquidity = many buyers and sellers; tight bid-ask spread.
Low liquidity = few buyers/sellers; larger spread; higher price impact.