When it comes to financial markets, liquidity is the unsung hero. It’s the oil that keeps the engine running, the magic that turns assets into cash and makes transactions seamless. Whether you’re swapping dollars for euros or diving into the world of Bitcoin, understanding liquidity is key to navigating the trading seas with confidence. Let’s unpack why liquidity is so crucial in forex and crypto markets and how it influences every trade you make.
Liquidity in Simple Terms
Liquidity is how easily an asset can be bought or sold without dramatically changing its price. Imagine…