#Liquidity101

Liquidity is the ease with which an asset can be bought or sold without causing a significant change in its price. It is a measure of how active and efficient the market is. A liquid market allows transactions to be executed quickly, with minimal delay or price fluctuation.

For example, in a liquid market like the stock exchange, there are many buyers and sellers at any given time. If you want to sell shares of a popular company, you can find a buyer almost instantly, and the price you receive will be close to the market price. A large number of participants ensures that prices remain stable and transactions are executed smoothly.