The ease with which a currency pair can be bought or sold without significantly moving the price.
Highly liquid pairs like EUR/USD trade over USD 1 trillion per day, meaning even large orders have minimal price impact. Liquidity is lowest during session overlaps outside major centres - thin liquidity widens spreads and increases slippage risk.
Broker liquidity quality depends on its pool of liquidity providers. Institutional-grade brokers aggregate feeds from multiple tier-1 banks to maintain tight pricing even in volatile conditions.
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