Liquidity in the markets while trading

[edges2626]

If you cannot see liquidity in the markets, you will be the liquidity. liquidity is very important as the big institutions target your SL blimits and S limits as aretail trader

 

[Sherverty]

Liquidity is an important feature of all financial markets (e.g. PWC 2015), yet little is known about the liquidity of the foreign exchange market. There is still no clear understanding of why and how foreign exchange illiquidity arises. For example, we do not know what drives foreign exchange liquidity and comovements in the liquidity of individual currencies (the so-called commonality in market liquidity).

 

[Caroline Forbes]

The forex market is very liquid, and trading in a liquid market is beneficial as market prices of currencies remain stable without many fluctuations. Liquidity arises mainly due to market volatility.

 

[equalizer]

i looking for a way to interprate the liquidity of the market in an indicator ... there is no one right there

 

[Schmooze]

One of the main reasons to trade the forex market is its high liquidity. It denotes how actively the currency pairs are traded in the market without causing any larger price movements in the exchange rate. Due to high liquidity, forex is one of the top profitable markets in the world.

 

[Zygosis]

Liquidity is indeed an important factor in trading, that’s why I prefer trading major pairs because they are highly liquid. The trading volume of these pairs is extremely high as they are traded more by big financial institutions and companies.High liquidity lets you experience tightest spreads as well.