#Liquidity101

Let’s talk about one of the most overlooked trading factors: #Liquidity101 💧📈

Liquidity refers to how easily an asset can be bought or sold without affecting its price. High liquidity = smoother execution and tighter spreads. Low liquidity = slippage, delays, and unexpected price moves—especially during market spikes!

Before entering a position, I always check 24h volume, order book depth, and spread on pairs like SOL/USDT. If these are thin, I reduce position size or avoid the trade altogether.

✅ Pro Tip: Use limit orders during low liquidity to avoid poor fills. Break large orders into smaller chunks to reduce slippage!

How do you manage liquidity risk?