#Liquidity101

is all about understanding how easily you can buy or sell something without messing up its price. When a market is liquid, there are plenty of buyers and sellers, so you can trade quickly and at fair prices. On the flip side, low liquidity means fewer buyers and sellers, which can make prices jump around a lot.

The basics include things like the bid-ask spread (the difference between what people are willing to pay and sell for) and market depth (how many orders are out there). Liquidity is important because it makes trading smoother, reduces costs, and helps keep the market stable.

Basically, knowing liquidity helps you make smarter trades and avoid big risks, especially when things get shaky in the market.