#Liquidity101 #Liquidity101 Think of the market as a fair. If there are many people buying and selling the same thing (many "arepas" stands and a lot of people wanting to buy them), it's super easy for you to buy your arepas at the price you want and get them instantly. There is a lot of "liquidity".

But if there is only one arepas stand and no one else selling or buying, if you want one, the person at the stand can ask for whatever they want, or if you want to sell yours, no one will buy them quickly. That is low liquidity!