#TradingTools101

A simplified explanation of the concept of liquidity (Liquidity) under the title #Liquidity101:

💧 #Liquidity101: What is liquidity?

Liquidity means how easily an asset (like cash, stocks, real estate) can be converted into cash without a significant loss in value.

💸 Types of liquidity:

High Liquidity:

Assets that can be sold quickly and at a price close to their true value.

Examples:

Cash 💵

Gold 🪙

Publicly traded stocks 📈

Low Liquidity:

Assets that take a long time to sell, or may require lowering the price to be sold.

Examples:

Real estate 🏠

Artworks 🎨

Private companies

📊 Liquidity in the financial market:

In stock or cryptocurrency markets, high liquidity means the presence of **a large number of buyers