What is Liquidity?
Liquidity describes how easily you can buy or sell an asset without moving its price much. A liquid market has many active buyers and sellers, tight spreads, and deep order books, so trades fill quickly near the quoted price. An illiquid market has fewer participants, wider spreads, and bigger price jumps when orders hit.
Why Liquidity matters
It drives your real fill quality: low liquidity means worse prices, more slippage, and harder exits.
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