📊 Understanding Market Liquidity — The Hidden Force Behind Every Trade
💡 The Lesson
Every trade you place — buy or sell — needs someone on the other side.
That’s liquidity. It’s the oxygen of the market. Without it, prices jump, spreads widen, and your entries or exits slip.
🔥 What Is Liquidity?
Liquidity means how easily you can enter or exit a position without major price change.
High liquidity = smooth trading.
Low liquidity = wild moves.
Take EURUSD — one of the most liquid pairs in the world. You can buy or sell instantly with almost no slippage.
Now compare it to exotic pairs like USD/TRY — spreads are wider, orders take longer, and volatility spikes faster.
📈 Why It Matters to You
Liquidity affects:
1️⃣ Execution – Better fills, less slippage.
2️⃣ Spreads – Lower cost per trade.
3️⃣ Volatility – Smoother price action.
Trading during high-liquidity sessions (London + New York overlap) means cleaner setups and fewer surprises.
⚙️ Pro Tip — Time Your Trades
🕒 Best hours to trade major pairs:
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London Open (08:00–10:00 GMT)
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New York Open (13:00–16:00 GMT)
Avoid the dead hours (after New York close) unless your strategy thrives on slow markets.
🚀 Takeaway
Liquidity isn’t sexy — but it’s what keeps your strategy alive.
Trade where the crowd is, not where it’s quiet.
Because in trading, timing isn’t just about price — it’s about participation.
📢 Join my MQL5 channel for more trading insights and real examples:
👉 https://www.mql5.com/en/channels/issam_kassas
