Liquidity is how easily a position can be bought or sold without moving the price. Major pairs during the London and New York sessions are highly liquid, so quotes are tight and large orders fill close to the displayed price. Exotic pairs and off-hours markets are less liquid, which usually means wider spreads and more slippage.
Forex glossary
Liquidity
Related term
Trading Session
The forex market runs continuously for about twenty-four hours, but activity is concentrated in four regional sessions: Sydney, Tokyo, London and New York. Liqu…
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