What is liquidity? Liquidity is one of the core driving forces behind market prices; similarly, liquidity is equivalent to money. The market is composed of buyers and sellers, and prices can only change through mutual transactions between buying and selling; otherwise, without transactions for a long time, it appears as a straight line on the chart. The market is simultaneously a battlefield for both the house and the gamblers; the house is always the winner, while gamblers also distinguish between winners and losers. When you win money, one side loses money; when you lose money, one side wins money. The house becomes richer by extracting value from gamblers; given enough time, the house accumulates more capital. These houses are often referred to as smart money. However, they cannot trade casually; their capital is enough to influence the market, so they employ certain techniques to operate. Therefore, their success actually depends on deceiving their opponents—the gamblers, known as dumb money.