#TradingTypes101

Liquidity refers to the ease and speed of buying or selling an asset without significantly affecting its price.

🔹 High liquidity means there are a large number of buyers and sellers. You can trade quickly, with narrow spreads and minimal impact on the price.

🔸 Low liquidity means fewer participants in the market. This leads to price slippage, wider spreads, and even order failures during periods of high volatility.