Liquidity
Apr 17, 2022
Liquidity refers to the level of market interest - the level of buying and selling volume - available at any given moment for a particular asset or security.
From a trading perspective, liquidity is a critical consideration because it determines how quickly price moves between trades and over time. A high liquid market like forex can see large trading volumes transacted with relatively minor price changes. All illiquid, or thin, market trends to see prices move more rapidly on relatively lower trading volumes. A market that only trades during certain hours (future contracts, for example) also represents a less liquid, thinner market.
Hence: Prices Move Also Equals to Price Action