#Liquidity101 🔍 #Liquidity101 : Understanding to Trade Better!
Liquidity is the ability of an asset to be bought or sold quickly without significantly impacting its price. The more liquid a market is, the quicker orders are filled and at fair prices.
💥 In case of low liquidity:
High slippage 💸
Unfavorable execution prices 📉
Partially or non-executed orders ❌
🛠️ Before entering a position, I check:
The 24h trading volume
The depth of the order book
The chosen asset pair (prefer major pairs)
🎯 Strategies to reduce slippage:
Use limit orders ⏳
Avoid low volume hours (e.g., night or weekend)
Split large orders into several smaller ones ⛓️
Liquidity is the foundation for executing good trades, especially during periods of high volatility! 🔁
And you, what are your tips? 👇