Liquidity

Question 1

What is liquidity?

Answer 1

How fast and smooth I can trade an instrument

Question 2

What are 3 high liquid assets ?

Answer 2

Cash, stocks of large companies , government bonds

Question 3

What are 3 low liquid assets ?

Answer 3

Real estate, private equity, collectibles

Question 4

What is a benefit of liquidity

Answer 4

Lower risk

Question 5

What are high liquid instruments in forex

Answer 5

Major pairs

Question 6

What are 2 benefits with trading high liquid pairs

Answer 6

Tight spreads, fast execution

Question 7

What 4 things provide liquidity in forex markets?

Answer 7

Banks, financial institutions, market makers, large trading firms