#Liquidity101
Liquidity is the ease with which an asset can be bought or sold without significantly affecting its price. In markets with high liquidity, such as the EUR/USD pair or BTC/USDT, trades are executed quickly and with low spreads.
On the other hand, assets with low liquidity may experience sharp movements, slippage, and difficulty closing large positions.
Understanding liquidity is key to making informed choices about your pairs and managing risk.
It's not just about what to trade, but where and when.
