Cryptocurrency Q&A
What does trading not allowed due to low liquidity mean?
What does trading not allowed due to low liquidity mean?
KpopStarlight
Fri Nov 29 2024
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6 answers
1438
I encountered a message saying trading is not allowed due to low liquidity. I'm wondering what this means and why it prevents me from trading.
6 answers
Eleonora
Sun Dec 01 2024
Liquidity is crucial in determining the efficiency of a market.
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CryptoDynasty
Sun Dec 01 2024
A scenario with insufficient liquidity leads to widened bid and ask spreads.
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RobertJohnson
Sun Dec 01 2024
This spread represents the difference between the price a buyer is willing to pay and the price a seller is willing to accept.
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OceanSoul
Sat Nov 30 2024
When liquidity is low, this spread becomes significantly large.
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Arianna
Sat Nov 30 2024
Consequently, the client's profit and loss (P&L) can be adversely affected immediately.
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