#Liquidity101

💧 Liquidity 101: Why It Matters in Trading 📉📈

Ever heard the term liquidity and wondered what it really means? Let’s break it down.

Liquidity refers to how easily you can buy or sell an asset without affecting its price. High liquidity = fast, smooth trades with minimal price changes. Low liquidity = fewer buyers/sellers, higher slippage, and more risk.

🔹 In a liquid market (like BTC or AAPL), there’s high trading volume and tight spreads.

🔸 In an illiquid market, it might take longer to fill your order—and you may pay more or sell for less.

💡 Pro tip: Always check liquidity before placing big trades. It can make or break your strategy.