Liquidity
A deep river versus a puddle. Dive into one and barely ripple it; jump into the other and the water flies everywhere.
In plain English
How easily something can be bought or sold quickly without pushing its price around.
A market with high liquidity is crowded with buyers and sellers, so big trades slide through smoothly at fair prices. EUR/USD during the London–New York overlap is about as liquid as anything on earth.
When liquidity drains away, at night, over holidays, or on exotic pairs, spreads stretch, slippage grows and prices can jump in jerky gaps.
Don’t be that stickman
Trading thin markets at odd hours and blaming the broker for the wide spread and rough fills.
Keep this word for good
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