Liquidity

Definition

Liquidity refers to how easily a currency pair can be bought or sold without causing a significant price change. Major pairs like EUR/USD are highly liquid with tight spreads. Higher liquidity generally means faster execution and less slippage. Liquidity varies throughout the day based on market sessions.

Related Terms

Spread Slippage Major Currency Pairs

More Trading Concepts Terms

Leverage Margin Margin Call Stop Out Level Swap (Rollover)Slippage Volatility Carry Trade Long Position Short Position