#Liquidity101 #Liquidity101

Liquidity refers to how easily an asset can be bought or sold without affecting its price. High liquidity means many buyers and sellers, resulting in faster trades and tighter spreads—common in major stocks or cryptos. Low liquidity assets may have price slippage and longer wait times to execute trades. #MarketLiquidity affects how smoothly markets operate, while #AssetLiquidity focuses on individual investments. Liquidity is crucial for risk management, especially in volatile markets. Traders and investors should always consider liquidity before entering or exiting a position. #TradingTips #InvestingBasics #CryptoTrading #Finance #LiquidityMatters #StockMarket #DeFi