Market liquidity
Updated 2026-09-20
Definition
How easily you can buy or sell without moving the price: it depends on the number of participants ready to trade.
Why it matters
Forex is very liquid, especially during the London-New York overlap. With thin liquidity spreads widen and moves become erratic. In SMC language "liquidity" also means the waiting orders above highs and below lows.
Practical example
At 3 in the morning EUR/USD's spread is higher and moves more erratic than at 3 in the afternoon.
Learn more
Course lesson: Sessions and correlations: when to trade and what not to duplicateRelated entries
Want to compare notes with other traders?
Join the community to share ideas and questions, or the free signal room on Telegram.
Educational content, not financial advice. Trading involves risk.