Relation Between Liquidity and Volatility?

Eddy Skom Mmsi 2019.11.26 11:32 #1

Dextor Mason:
How Liquidity and Volatility depends on each other?

Anyone know what is relation between Liquidity and Volatility? Does anyone know what are the tips for verse scenario?

Market liquidity refers to the depth of buy and sell orders. A liquid market is one where you can buy or sell quickly. Volatility refers to a market's rate of change. A volatile market is one in which price changes rapidly over a short period of time.

Hello, I need help MT5 "Market Depth" The perfect mechanical trading

Dextor Mason 2019.12.02 06:51 #2

Eddy Skom Mmsi:

Market liquidity refers to the depth of buy and sell orders. A liquid market is one where you can buy or sell quickly. Volatility refers to a market's rate of change. A volatile market is one in which price changes rapidly over a short period of time.hhi

Hi,

thanks for sharing your knowledge.
What about market liquidity for the Forex Trading market? Is it means the how many traders are actively trading?

Jean Francois Le Bas 2019.12.04 08:31 #3

Dextor Mason:

Hi,

thanks for sharing your knowledge.
What about market liquidity for the Forex Trading market? Is it means the how many traders are actively trading?

high volatility = lower liquidity

extreme volatility (crashes) = no orders passed on, no SL triggered