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Liquidity, liquidity voids and liquidity runs explained
Market liquidity refers to how easily an asset can be bought or sold without causing a large change in its price. A highly liquid market has enough buyers and sellers to absorb transactions relatively efficiently, while a less liquid market can experience larger price movements when sizeable orders enter or leave. This is why liquidity matters to traders Price does not move simply because someone wants to buy or sell. Transactions need opposing orders. When there is enough liquidity around the current price, buying and selling can take place without forcing the market to move significantly to find the next available ... (full story)