#Liquidity101 💧 Ever heard of "liquidity" in markets but unsure what it really means? Let’s break it down in #Liquidity101:

Liquidity refers to how quickly and easily an asset can be bought or sold without affecting its price. High liquidity means tighter spreads, faster execution, and more price stability—think large-cap stocks or major forex pairs. 🏦

Low liquidity? You might face wider spreads, price slippage, or delayed order fills—common in penny stocks or niche crypto tokens. 🕳️

Traders love liquid markets because they offer flexibility and efficiency. But remember: liquidity can vary based on time of day, news events, or market sentiment. 📊

Understanding liquidity helps you manage risk and trade smarter.

#TradingBasics #InvestingTips #FinanceEducation #Liquidity101