Basics

Liquidity

Liquidity is how easily an instrument can be bought or sold without moving its price much. Liquid markets usually have narrower spreads; thin markets can have wider spreads and more slippage.

Also called: market liquidity, liquid market

Hypothetical example

Hypothetically, a pair quoted with a 1-pip spread during its busiest hours shows a 4-pip spread late at night, when fewer participants are trading.

Used in these guides

Markets & hours8 min read
Forex market hours in Mexico, Colombia, Chile, Peru and Argentina
When the Sydney, Tokyo, London and New York sessions open and close in your local time, and how daylight saving time moves them.
Basics8 min read
Pips, lots and spreads explained
How price moves are measured, how trade size turns pips into money, and what the spread costs you on every trade.
Markets & hours8 min read
Daylight saving time and market hours
Who changes their clocks and when in 2026–2027, what the mismatch weeks do to the London–New York overlap, and what to check in your platform.

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Risk Warning: CFDs are complex instruments and come with a high risk of losing money.

Liquidity

Hypothetical example

Related terms

Used in these guides

Forex market hours in Mexico, Colombia, Chile, Peru and Argentina

Pips, lots and spreads explained

Daylight saving time and market hours