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Centrino Capital

Liquidity Definition

Liquidity refers to how easily an asset can be bought or sold in the market without significantly affecting its price.

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What is Liquidity?

Highly liquid markets, such as major currency pairs, typically have tighter spreads and more stable pricing.

Low liquidity can lead to wider spreads and increased price volatility.

Example of Liquidity

Major currency pairs like EUR/USD are considered highly liquid due to the large volume traded daily.

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