#Liquidity101 Liquidity is one of the most important factors for the success of a currency, and the trader must look for market liquidity in the currency they choose before buying. If the liquidity of the currency is weak when selling, you will encounter the term slippage.

This means there is not enough liquidity in the currency for sale, so if you are making a profit in the currency and want to sell, the return on the liquidity you will receive will be less than the price at which you sell, resulting in a loss of part of your assets even though the trade was profitable. This is an important term to research before purchasing the currency.

This happened to me when I found that upon selling, the platform informed me that there is not enough liquidity. The slippage would be 18% less than the selling balance, so I found myself losing the profit and part of the capital of the trade. Therefore, you should conduct your own analysis before entering any trade. This often happens with unknown currencies, while strong currencies or those with tens of millions in capital tend to have reliable liquidity.