#Liquidity101 đ§ Ever heard of "liquidity" in markets but unsure what it really means? Letâs 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 stabilityâthink large-cap stocks or major forex pairs. đŠ
Low liquidity? You might face wider spreads, price slippage, or delayed order fillsâcommon in penny stocks or niche crypto tokens. đłïž
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. đ
Understanding liquidity helps you manage risk and trade smarter.
#TradingBasics #InvestingTips #FinanceEducation #Liquidity101