#Liquidity101 refers to the ease with which an asset can be converted into cash without affecting its market price. High liquidity means quick transactions with minimal price impact—think stocks or major currencies. Low liquidity, like real estate, takes time to sell.

Key concepts:

- **Market liquidity**: High trading volume = tighter bid-ask spreads.

- **Funding liquidity**: Access to cash/credit to meet obligations.

- **Importance**: Liquidity ensures market stability, efficient pricing, and investor confidence.

Crypto, forex, and blue-chip stocks are highly liquid; niche assets aren’t. Always assess liquidity to manage risk and avoid being stuck in volatile markets!