#Liquidity101 Why does liquidity matter in trading? 🔍

Liquidity is the ability of an asset to be quickly bought or sold without significantly affecting its price. The higher the liquidity, the smaller the spread, less slippage, and faster order execution.

📈 In the Forex market, the main liquidity is concentrated in major pairs (EUR/USD, GBP/USD, etc.), while in crypto, liquidity can vary significantly depending on the exchange and the coin.

⚠️ Low liquidity = high risks. In such moments, even a small trade can move the market, and large positions are hard to close without losses.

🔍 Always consider liquidity before entering a trade, especially during news or overnight hours.