Liquidity
How easily an asset can be bought or sold without moving its price much.
A liquid market has many orders near the current price, so you can enter and exit with little impact. Low liquidity increases slippage and the spread.
How easily an asset can be bought or sold without moving its price much.
A liquid market has many orders near the current price, so you can enter and exit with little impact. Low liquidity increases slippage and the spread.