#Liquidity101
Paragraph (100 words):
Liquidity refers to how quickly and easily an asset can be bought or sold without significantly affecting its price. In financial markets, high liquidity means there are many buyers and sellers, making it easier to enter or exit trades. For example, major cryptocurrencies like Bitcoin or stocks like Apple have high liquidity. Low liquidity assets, on the other hand, may take longer to sell and could require accepting a lower price. Liquidity is crucial for efficient trading, price stability, and investor confidence. Traders often prefer liquid markets because they offer tighter spreads, less slippage, and better overall execution.
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#LiquidityMatters
#MarketBasics
