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What is Liquidity?

Updated October 19, 2026

Liquidity is how easily you can buy or sell without moving the price much.

Forex is one of the most liquid markets on earth, especially major pairs.

High liquidity means tight spreads and smooth fills.

Low liquidity, like late night or holidays, brings wider spreads and jumpy prices.

Example

EURUSD in the London session is super liquid, while an exotic pair at 3am isn't.

Questions people ask

When is liquidity highest?

When London and New York sessions overlap.

Why does liquidity matter for bots?

Thin markets mean more slippage and wider costs.

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