#Liquidity101

Before you trade, understand liquidity — it can make or break your strategy 👇

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🔹 What Is Liquidity?

Liquidity means how easily an asset can be bought or sold without affecting its price.

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🔸 High Liquidity

• Fast trades

• Small price changes

• Tighter spreads between buy/sell

💡 Great for active trading and large orders

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🔹 Low Liquidity

• Slower execution

• Bigger price swings

• Wider spreads

⚠️ Higher risk of slippage and volatility

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🔸 Why It Matters

More liquidity = better trading conditions

Check volume and order book depth before entering a trade.

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📘 Pro Tip: Liquidity often improves during peak trading hours and on well-established pairs.