#Liquidity101 Liquidity is one of the most important — yet often overlooked — aspects of trading. Simply put, liquidity refers to how easily an asset can be bought or sold without affecting its price.

High liquidity means there are plenty of buyers and sellers, allowing for faster trades and tighter spreads. It gives traders confidence that they can enter or exit positions with minimal slippage. This is especially important in fast-moving markets.

Low liquidity, on the other hand, can lead to larger price swings and delays in order execution. It increases risk, especially for large trades, as even a single order can impact market price.

Whether you're a beginner or a pro, always check the liquidity of the asset and platform you're trading on. It can be the difference between a smooth trade and a costly mistake.

Trade smart. Know the flow.

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