Liquidity
DeFi
Ease of trading without causing significant price moves.
Liquidity is how easily you can buy or sell without moving the price. Deep markets handle larger trades with less slippage.
Frequently asked questions
How do I measure liquidity?
Look at order book depth or pool reserves and recent volume. Large orders in shallow markets cause slippage.Why does liquidity vary by time?
Activity shifts by region and news cycles. Liquidity often improves during overlapping market hours.How can I trade large sizes?
Use TWAPs, split orders, or aggregators. Consider OTC desks for very large transfers.