LIQUIDITY PROVIDER
Liquidity provider is an individual or institution that provides capital to a market to facilitate trading.
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Liquidity refers to how easily an asset can be bought or sold in the market without affecting its price. In trading, liquidity is crucial for ensuring that transactions can be executed quickly and at desired prices. High liquidity assets, such as major stocks or forex pairs, offer tighter spreads and less slippage, providing better opportunities for traders. Conversely, low liquidity assets can be more volatile, leading to wider spreads and the potential for greater price fluctuations, which can increase risk.