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Importance of high liquidity in forex market


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High liquidity market is good because it means that you can open and sell the price in faster way rather then illiquid market, and talking about the movement it would be in smaller fraction, so liquid market in some cases is not volatile but if there is a factor which driven most of the market, it could cause a huge volatility even more than illiquid market's movement can do.

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High liquidity market is good because it means that you can open and sell the price in faster way rather then illiquid market, and talking about the movement it would be in smaller fraction, so liquid market in some cases is not volatile but if there is a factor which driven most of the market, it could cause a huge volatility even more than illiquid market's movement can do.

But never hope that the price would surge so much, for example of what i said before is bitcoin vs USD. BTC price can rise like few hundred coins so easily while USD is hard, it takes nearly 3/4 or even more at one trend to make something like that but in this current market is nearly impossible.

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But never hope that the price would surge so much, for example of what i said before is bitcoin vs USD. BTC price can rise like few hundred coins so easily while USD is hard, it takes nearly 3/4 or even more at one trend to make something like that but in this current market is nearly impossible.

Well BTC and USD example you offer there is too much volatile and actually i don't really like it compared to foreign exchange . I know forex is somewhat slow in terms of movement/volatility it is just dozen to hundred pips but with larger capital we have and plus the leverage, you can earn hundred to thousand dollars per month depend on the way you trade.

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Forex a potential market which is providing a great liquidity to the traders which makes forex market one of the largest financial markets in the world. As forex is a decentralized market, the greatest advantage of it: we can convert one currency for another at the most easiest way, transaction can be executed at any place and at any time, day or night. A greater liquidity, a 24 hour transaction makes forex market very appealing to the millions of people today.

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