What is Forex Liquidity?



Forex liquidity refers to how easily a currency pair can be bought or sold in the foreign exchange market without causing major price movements. A highly liquid market has lots of buyers and sellers, tight spreads, and smooth transactions.

High Liquidity Pairs: EUR/USD, GBP/USD, USD/JPY โ€“ because they have massive trading volumes.

Low Liquidity Pairs: Exotic currencies like USD/TRY or USD/ZAR, which have fewer participants and wider spreads.
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