#Liquidity101 Here's a quick rundown on liquidity:
Definition: Liquidity refers to how easily an asset can be bought or sold without significantly affecting its price.
Importance: High liquidity reduces the risk of large price swings, making it easier to enter or exit trades.
Measurement: Liquidity can be measured using metrics like trading volume, bid-ask spread, and market depth.
*Impact: Low liquidity can lead to increased volatility and trading costs, while high liquidity provides more stable and efficient markets.