Liquidity refers to the level of activity or the ease with which an instrument can be bought or sold in the market. In simple terms, if the market experiences significant price fluctuations or moves by a large number of pips, it indicates high liquidity. A highly liquid market typically has more participants and offers smoother price action, making it easier to enter and exit positions.
What is Liquidity in Trading and Why Does It Matter?
Liquidity refers to how easily an asset can be bought or sold in the market. Learn why market activity and price fluctuations.
Updated over a week ago