Liquidity
Why Thin Liquidity Creates Violent Moves in Financial Markets
Most traders blame volatility on news.
The market usually blames liquidity.
When order books thin out and market depth disappears, even modest buying or selling pressure can trigger outsized price moves. Understanding liquidity voids, slippage, and market structure reveals why markets often move fastest when there is nobody left to absorb the pressure.
Jun 6, 20263 min
