TECHNOLOGY VECTOR FOREX LIQUIIDITY
THE IMPORTANCE OF LIQUIDITY IN FOREX
Forex liquidity refers to a currency pair’s ability to be bought and sold without creating a major impact on its exchange rate. A currency pair is regarded as having a high level of liquidity when it can be bought or sold easily, and there is a significant amount of trading activity for that pair.
The importance of liquidity in forex trading is clear to see since it is a key factor in being able to make a trade profitable. Having greater liquidity in a financial market enables an easier transaction flow and makes pricing more competitive.