Liquidity refers to how dynamic a market is. It is determined by what number of traders are effectively trading and the absolute volume they're trading. One reason the foreign exchange market is so fluid is on the grounds that it is tradable 24 hours per day during weekdays. It is additionally a profound market, with almost $6 trillion turnover every day. Despite the fact that liquidity varies as budgetary bases on the world open and close for the duration of the day, there are typically relatively high volumes of forex trading going on constantly.