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What is liquidity?

Liquidity describes how quickly an asset can be bought or sold without an impact on its price. Markets with high liquidity usually have tight spreads and plenty of buyers and sellers. Low liquidity can result in slippage and make it harder to open or close trades.

Related articles

  • What is volatility?
  • What are bid and ask prices?
  • How do I obtain a statement for taxation purpose?

Articles in this section

  • What is liquidity?
  • What is volatility?
  • What are bid and ask prices?
  • What is a take-profit order?
  • What is a stop-loss order?
  • What is slippage?
  • What is a margin call?
  • What is a spread in trading?
  • What is a pip?
  • What is leverage?
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