What is meant by Liquidity in Forex

What is Liquidity in Forex
What is Liquidity in Forex?

Forex Currency Trading is the biggest market we have in the financial market. With a turnover of trillions a day, you can clearly understand why there are so many traders from amateur traders all the way to professionals.

In all cases, in forex we have a buyer and a seller, all these trading volumes will be absorbed by forex.

An investor should be attracted by liquidity as it is one of the most important aspects of forex. When the market is open – you have all the power in you to open and/or close the position at any time, whenever you want during market hours. The power is in you.

Major banks have to buy and sell prices for currencies and hence, a trader wouldn’t have to worry about stuck in a position because of a lack of interest in the market.

Liquidity takes into account all activities of the market and the function of volume, providing more frequent price quotes at a smaller spread.

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