// TRADING TERMINOLOGY
What is Liquidity?
The ease with which an asset can be bought or sold without affecting its price.
In-Depth Explanation
High liquidity means there are many buyers and sellers (e.g., EUR/USD). Low liquidity means few participants, which often leads to wider spreads and higher slippage.
Practical Example
"Major currency pairs have high liquidity, while "exotic" pairs like USD/ZAR have much lower liquidity."
Related Terms
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