#Liquidity101

Liquidity is the lifeblood of the market. Without it, trading becomes slow, prices slide, and large transactions cause chaos.

Those who ignore liquidity enter a currency illusion thinking they are winning, and cannot sell without a huge loss.

Liquidity means the ability to enter and exit a trade without a significant impact on the price. Currencies with high liquidity mean better trading opportunities, tighter spreads, and faster execution.

Don't be tempted by the numbers… Always ask: Is there real liquidity?

Before you buy, check the trading volume, market depth, and the number of orders.