Liquidity is how easily an asset can be bought or sold without moving its price. Liquid markets have many buyers and sellers and tight spreads.
How traders use it
- High liquidity means easy entries and exits.
- Low liquidity causes slippage and gaps.
- Major pairs and large caps are the most liquid.
See it in dtcharts
See it all in action in the dtcharts terminal — practice risk-free with paper trading.