The liquidity of a currency pair in other words is the ability to liquidate any amount you need (sell, for example) when you need it, without tangible loss of time and income.
The higher the liquidity of the pair, the more reliable and attractive it is for trading. This implies that there is strong demand and high supply for this asset.
The higher the liquidity of the market, the faster you will be able to complete a deal on the position you are interested in.
The price in a highly liquid market moves gradually, in small steps. Less liquidity leads to large price jumps as well as gaps in the chart.
What major currency pairs do you work with?
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻