Why does liquidity matter to the online trader?
Results 1 to 2 of 2
  1. #1
    Join Date
    May 2006
    Posts
    126

    Default Why does liquidity matter to the online trader?

    Perhaps due to the following reasons:
    1. It is easy to establish and exit a position because of the depth, liquidity, and continuous, 24-hour nature of the FX market.
    2. You can react to economic and political events right away because you can get consistently tight bid/ask spreads anytime of the day.
    3. Because of the FX market's continuous activity (24-hour), trading is more orderly.

    Any other ideas?

  2. #2
    Join Date
    Apr 2011
    Posts
    347
    I know this is an old thread, but that is a simple question. To some traders you can make money in a flat market, and you can, but liquidity provides the ups and downs, waves and momentum that is needed for strong trending. My view!

Forum Sponsors

Similar Threads

  1. Why does it matter?
    By Johnny2pips in forum Newbie Island
    Replies: 6
    Last Post: 10-11-2010, 01:19 PM
  2. Replies: 0
    Last Post: 11-27-2007, 06:50 PM
  3. Replies: 0
    Last Post: 11-27-2007, 06:50 PM
  4. why does the spread change?
    By kagein in forum Newbie Island
    Replies: 3
    Last Post: 10-28-2007, 10:01 PM
  5. Why does the market sometimes move down after positive news?
    By broberson in forum Fundamental-ville
    Replies: 17
    Last Post: 02-13-2007, 03:57 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
"You will find the key to success under the alarm clock."
Benjamin Franklin