Liquid Market

Liquid Market Place Defination

Typically, a trade market is categorized as either a liquid or thin market. A liquid market has many buyers and sellers. It is a platform where all trades are easily and affordably conducted. Liquidity refers to a market's unrestricted condition.

A sufficiently liquid market establishes an equilibrium price that is agreed upon by all. Due to the equality of buyers and sellers in such a market, price manipulation is fairly challenging. As a result, choosing an asset with a high level of liquidity is essential for a positive trading environment.