A Monday morning, market liquidity

Liquidity

Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. So, if an asset is extremely liquid, it means that one can trade that asset knowing that their specific trade will not create significant movements in the market. This is because there are so many traders both long and short, generating huge volume for that particular asset. Liquidity in the foreign exchange marketTake the example of the foreign exchange market – it is the most liquid market in the world, since many banks, hedge funds and individual traders are involved in the buying and selling of vast cumulative amounts of currencies each day. In fact, over $5 trillion is traded daily, as reported by the Bank for International Settlements. If a trader wants to go long the EUR/USD currency pair, they will have no trouble finding traders who want to go the opposite direction, due to such abundant liquidity. EUR/USD is the most liquid trading instrument in the world, regardless of the market. It is extremely easy to buy or sell, with an immense amount of trading activity for the pair. Liquidity reflects the amount and frequency of the asset that is traded, i.e. the more an asset is traded, the more liquid that asset is, making it virtually easy to buy and sell the asset. asset. Similarly, the less an asset is traded, generally the less liquid the asset is, making it more difficult to buy or sell that asset. Needless to say, liquidity is one of the key attributes a trader looks for when deciding whether or not to continue trading an instrument, as it tells the trader how stable a market is despite the masses of trades. businesses. This is exactly why the forex market is so attractive, since its liquid environment allows for massive trading volumes without much effect on the exchange rates of currency pairs.

Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. So, if an asset is extremely liquid, it means that one can trade that asset knowing that their specific trade will not create significant movements in the market. This is because there are so many traders both long and short, generating huge volume for that particular asset. Liquidity in the foreign exchange marketTake the example of the foreign exchange market – it is the most liquid market in the world, since many banks, hedge funds and individual traders are involved in the buying and selling of vast cumulative amounts of currencies each day. In fact, over $5 trillion is traded daily, as reported by the Bank for International Settlements. If a trader wants to go long the EUR/USD currency pair, they will have no trouble finding traders who want to go the opposite direction, due to such abundant liquidity. EUR/USD is the most liquid trading instrument in the world, regardless of the market. It is extremely easy to buy or sell, with an immense amount of trading activity for the pair. Liquidity reflects the amount and frequency of the asset that is traded, i.e. the more an asset is traded, the more liquid that asset is, making it virtually easy to buy and sell the asset. asset. Similarly, the less an asset is traded, generally the less liquid the asset is, making it more difficult to buy or sell that asset. Needless to say, liquidity is one of the key attributes a trader looks for when deciding whether or not to continue trading an instrument, as it tells the trader how stable a market is despite the masses of trades. businesses. This is exactly why the forex market is so attractive, since its liquid environment allows for massive trading volumes without much effect on the exchange rates of currency pairs.
Read this term is very thin until it improves as more Asian hubs come online. Australian markets are closed today for a public holiday, so the thinner liquidity conditions will persist for a bit longer than normal today.
The prices are likely not to fluctuate too much, so pay attention.

  • EUR/USD 1.0513
  • USD/JPY 134.38
  • GBP/USD 1.2320
  • USD/CHF 0.9878
  • USD/CAD 1.2780
  • AUD/USD 0.7038
  • NZD/USD 0.6351

Bitcoin

Bitcoin

Bitcoin is the largest and the first digital currency in the world launched in 2009 by the entity Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it operates without a central bank or single administrator. Instead, Bitcoin can be sent through a peer-to-peer (P2P) network, which itself is devoid of any middleman. Instead of being physical currency, Bitcoins represent pieces of digital code that can be sent and received over some sort of distributed network. ledger network called blockchain. As bitcoins are not issued or backed by any government or central bank, they are considered legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In exchange for mining Bitcoin, computers receive rewards in the form of new Bitcoins. Over time, mining becomes more and more difficult, causing subsequent rewards to become smaller and smaller. Given the structure of the code, there will only ever be 21 million Bitcoins. However, in 2020 there were already 18.3 million Bitcoins in circulation. Bitcoin Making HistorySince its launch in 2009, Bitcoin has remained the most popular and largest cryptocurrency by market capitalization in the world. Its popularity has also contributed significantly to the release of thousands of other cryptocurrencies, now known as altcoins. In its early days, the crypto market was originally hegemonic, although currently the landscape contains countless altcoins. Bitcoin has also been controversial since its initial launch. It has been heavily criticized for its use in illegal transactions and money laundering given its decentralized nature. Since bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illicit behavior. Critics also point to its high electricity consumption for mining, widespread price volatility and stock market theft. Bitcoin has been viewed by some as a speculative bubble given its lack of oversight.

Bitcoin is the largest and the first digital currency in the world launched in 2009 by the entity Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it operates without a central bank or single administrator. Instead, Bitcoin can be sent through a peer-to-peer (P2P) network, which itself is devoid of any middleman. Instead of being physical currency, Bitcoins represent pieces of digital code that can be sent and received over some sort of distributed network. ledger network called blockchain. As bitcoins are not issued or backed by any government or central bank, they are considered legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In exchange for mining Bitcoin, computers receive rewards in the form of new Bitcoins. Over time, mining becomes more and more difficult, causing subsequent rewards to become smaller and smaller. Given the structure of the code, there will only ever be 21 million Bitcoins. However, in 2020 there were already 18.3 million Bitcoins in circulation. Bitcoin Making HistorySince its launch in 2009, Bitcoin has remained the most popular and largest cryptocurrency by market capitalization in the world. Its popularity has also contributed significantly to the release of thousands of other cryptocurrencies, now known as altcoins. In its early days, the crypto market was originally hegemonic, although currently the landscape contains countless altcoins. Bitcoin has also been controversial since its initial launch. It has been heavily criticized for its use in illegal transactions and money laundering given its decentralized nature. Since bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illicit behavior. Critics also point to its high electricity consumption for mining, widespread price volatility and stock market theft. Bitcoin has been viewed by some as a speculative bubble given its lack of oversight.
Read this term is around 27.5000 USD

I’ll be back soon with news from the weekend. Scroll down the main page to check out what’s already been posted over the weekend.