#Liquidity101
💧📊 Liquidity 101! Let's dive in:
*What is liquidity?*
Ability to buy or sell assets quickly without significantly affecting market price.
*High liquidity:*
- Tight bid-ask spreads
- Large trading volumes
- Market stability
*Low liquidity:*
- Wide bid-ask spreads
- Volatility
- Difficulty executing trades
*Importance:*
- Market efficiency
- Price stability
- Trading ease
Want to know more about liquidity providers, liquidity ratios, or its impact on trading strategies?