#Liquidity101 Why is liquidity important when trading – and how to identify it

🔹 Liquidity is the ability to buy and sell assets quickly without losing value.

🔹 In trading, high liquidity helps you execute orders quickly, with low costs and better risk management.

🔹 Trading in low liquidity assets can easily lead to "stuck orders", slippage, or difficulty exiting when the market is volatile.

✅ How to identify assets with good liquidity:

• High trading volume

• Low bid-ask spread

• Fast order execution

• Many participants, frequent trading

💡 Choosing assets with high liquidity = more effective trading + safer.