#CommunityAMA Misunderstanding of Liquidity AMAs sometimes fail to adequately explain liquidity – how easily an asset can be bought or sold without affecting its price. Speakers might present trading as if all pairs and times offer perfect execution, neglecting to highlight that low liquidity can lead to wider spreads, significant slippage, and difficulty in entering or exiting trades at desired prices. This misunderstanding leaves traders vulnerable to worse fills, higher costs, and being unable to close positions effectively, especially when trading exotic pairs or during off-peak hours, increasing unexpected losses.