Liquidity
How much can be transacted without moving the price materially.
In plain English
A liquid market absorbs large orders with small price changes. An illiquid one lurches, so the same order size costs you more.
Example
The same order that barely moves price at midday can move it several percent overnight in a thin market.
Market StructureTrading Basics
See also
Used in these lessons
- How Crypto Markets Differ
- Stablecoins and Settlement Risk
- On-Chain versus Exchange Trading
- Crypto Volatility and Round-the-Clock Markets
- Liquidity and Order Flow Basics
- Ranges, Consolidation and Breakouts
- Market Sessions and When Liquidity Appears
- Stop-Losses and Invalidation
- Support and Resistance
- Volume and What It Confirms
- What Is Trading, Really?
- Costs of a Round Trip
- Choosing a Market to Learn On
- Demo Accounts and Paper Trading