Liquidity is one of the most important factors for the success of a currency, and traders should look for market liquidity in the currency they choose before buying. If the liquidity of the currency is weak, when selling you may encounter the term 'slippage'. This means that there isn't enough liquidity in the currency for you to sell, so if you are making a profit in the currency and want to sell, the liquidity you'll receive will be less than the price you are selling at, causing you to lose part of your assets even though the trade was profitable. This is an important concept to research before purchasing a currency.

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

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