Our LiquidityWhile the forex market is relatively very liquid, the market depth could change depending on the currency pair and time of day. In our forex trading sessions part of the school, we'll tell you how the time of your trades can affect the pair you're trading.
For an asset, its liquidity is its ability to be bought or sold without any discount or premium. Liquidity thus reflects the amount and frequency the asset and traded. The more something is bought and sold, an individual's ability to charge premium or look for discounts lowers. However the less liquid something is, the harder it will be for it to be bought or sold.
A market that is liquid means it has many trades and is composed of many traders. The Forex market is extremely liquid because hundreds of banks and millions of individuals trade currencies everyday. In fact, nearly $4 trillion is exchanged daily and this number is increasing as interest by retail traders are expanding. Consequently, traders can trade quickly with a click or two.