#Liquidity101 *Liquidity 101* 💧📊

Liquidity refers to how easily an asset can be bought or sold without affecting its price. Think of it like water flowing smoothly - the more liquid an asset, the easier it is to trade.

*High Liquidity:*

- Easy to buy/sell

- Tight bid-ask spreads

- Less price volatility

*Low Liquidity:*

- Hard to buy/sell

- Wide bid-ask spreads

- More price volatility

Understanding liquidity helps you navigate markets and make informed trading decisions! 🤔 #liquidity #trading #markets