Hello Everyone |
|---|
How are you All? Hope everyone doing well and enjoy their days with family and friends. I am also fine and enjoy my day's at home. Today i am here to participate the amazing contest Season 15 of the S4B Crypto Contest Which is organized by dear brother @waqarahmadshah I share my knowledge about this hope you all like it and support me. I start my task without any more daley of time..
What is liquidity in crypto markets?
Liquidity is very important term which is used in crypto market. Liquidity mean the assets bought and sell without causing the significance if the Price. In crypto market we all know the up and downs came same the liquidity in market high and Low.
High liquidity mean the Order of sell and buy i large number & High level of transaction amd quick at stable price.
Low Liquidity means the Order of sell High volatility amd difficult in the large transactions.
There are many factor affecting the the liqauity in Crypto Market like Trading Volume,Market Depth and Exchange Listing these are some key factor which affect the liqauity in Crypto Market.
How does liquidity affect bid-ask spreads?
Liqauity affect bid-ask spread in two way's.
High Liquidity
High liqauity or narrow bid -ask many buyer and seller, leading to competitive pricing.
Low Liqauity
The wider bid-ask spread due to market fewer participants which is less competitive pricing.
How can sudden liquidity drops impact traders?
I already mention some important points of this question in first paragraph. So the sudden liquidity impacts in trader due to many significant.
Increased Volatility
This is the very basic cause due to this the market sudden liquidate, price became more volatile and the Chang in Price huge.
Wider bid-ask spread
This is very common point due to this the cost of trading increase as bid -ask spread.
Limited Exit Opportunity
The main cause of market drop the trader find difficult ti exit position without significant.
This is my entry about this amazing contest hope you all like it and support me on this platform. I am Also invited some of my friend to participate in this Contets @lhorgic @xiguang @djanita @chasad75 @wirngo everyone participate in this
Best wishes for All 😘
Achievement 1 Link
https://steemit.com/hive-172186/@huraira50/achivement-1-introduceyourself
Thanks All for Reading my Post 😊 |
|---|
Thank you, friend!
I'm @steem.history, who is steem witness.
Thank you for witnessvoting for me.
please click it!
(Go to https://steemit.com/~witnesses and type fbslo at the bottom of the page)
The weight is reduced because of the lack of Voting Power. If you vote for me as a witness, you can get my little vote.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit