The ease of buying and selling an asset or instrument. For an extreme example, a four-bedroom 18th-century listed townhouse in St James’s, London, is a very illiquid asset; its liquidity is low because it’s slow and difficult to buy and sell. Most CFDs are very liquid instruments because it’s quick and straightforward administratively to buy and sell them. The liquidity of most CFDs changes over time based on whether they’re in session and generally how widely traded they are. For example, TRY-ZAR is much less liquid than EUR-USD, and both are less liquid than usual at three in the morning GMT.

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