Liquidity

What it means

A liquid market usually has more resting interest and can handle trades with less disruption.

What to watch

Liquidity changes by session, product, and news conditions. Thin periods often increase slippage and spread cost.

Where traders usually run into this

Liquidity is most useful once it is tied to a concrete page, chart decision, or workflow question.

• Slippage keeps this term attached to a real glossary instead of leaving it as standalone jargon.
• Bid-Ask Spread keeps this term attached to a real glossary instead of leaving it as standalone jargon.
• Market Order keeps this term attached to a real glossary instead of leaving it as standalone jargon.

Best next page if this term is blocking you

If you understand the definition but still do not know what to do with it, start with Slippage. That page is the fastest way to see how liquidity shows up in a real glossary workflow.