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Financial Terms

Liquidity

December 1, 2010 | Author admin

Liquidity Definition: Liquidity is the ability to quickly convert an asset into cash. In forex trading, it applies as the ability to buy or sell a currency pair without a significant effect on the price. The more liquid a currency pair is, the less it will move when large buying or selling orders are executed.

Examples: The Eur/Usd has high liquidity.

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