A question about trading liquidity
A question about trading liquidity
About Liquidity what I understood that is if a trader buys a coin worth $100 and later sells his coin at $90 due to bad market conditions. Here liquidity is $10.
- Now my question is because of liquidity does that project or coin get profited?
- Or does the profit accrue to those who later make a profit in trading?
Oshini Perera Answered question June 3, 2024
That’s a loss but if you want to make that a description of liquidity, well then – you’ve been liquidated.
Both of the guys are correct about what liquidity means. For other terms, it’s also about the volume so buying and selling won’t be a problem for a trader.
And that’s a factor to be chosen when you’re investing on the market and as well as when you’re trading.
Oshini Perera Answered question June 3, 2024