What Is Liquidity?
Liquidity means how easily you can buy or sell without big price changes.
High liquidity → faster trades, better prices
Low liquidity → slower trades, wider spreads
What Is Slippage?
Slippage happens when your trade executes at a slightly different price than expected, usually due to:
Low liquidity
Large market orders
Fast price movement
How to Reduce Slippage
Use limit orders
Trade high-liquidity markets
Avoid large instant trades
Bid, Ask, and Spread
Bid → highest price buyers are offering
Ask → lowest price sellers accept
Spread → ask minus bid
Small spread = healthier market.