#Liquidity101 is the basis for understanding how a market moves. Liquidity represents the ease with which an asset can be bought or sold without affecting its price. In liquid markets, such as Forex or large stocks, transactions are executed quickly and with little slippage. In contrast, illiquid markets present greater risks and costs. High liquidity often means lower volatility and greater stability. For traders and investors, assessing liquidity is crucial before entering or exiting a position. Understanding this concept enhances decision-making and allows for trading with greater security and efficiency. #Liquidity101