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Home » Forex Glossary » Trading Liquidity

Trading Liquidity

The forex market is the most liquid of all financial markets with over $2 trillion in daily trading volume


For a currency pair or security to be liquif, it has be able to be turned into cash or traded without significantly changing its value. Highly liquid assets are valuable since investors can get value out of such assets rather quickly. This is part of the reason why the currency market is increasing in popularity with retail traders.