#Liquidity101

💧 What is liquidity in trading?

Simply put: Liquidity = How easily you can buy or sell without affecting the price.

🔹 High Liquidity

Many buyers and sellers

Fast trades

Stable prices

Common in big markets

🔸 Low Liquidity

Fewer participants

Slower trades

More price slippage

Riskier for big moves

📊 Why it matters:

In a liquid market, you can enter or exit positions quickly and confidently. In low liquidity, a single order can cause big price swings — not ideal for traders.

🧠 Pro Tip:

Always check trading volume before jumping in. High volume = high liquidity = smoother experience.

In the world of markets, liquidity is power. Understand it, and you’ll trade smarter. 💼📈