Why Trading During Low Liquidity Can Be Risky
When liquidity is thin, the gap between available orders can matter more.
A market order may consume several price levels, and the final fill may be worse than expected.
This can become especially important during quiet periods, sudden news events, or fast market transitions.
I consider both the potential setup and the quality of execution before entering.
A chart can look clean while the actual trading conditions are difficult.
Understanding liquidity is part of understanding risk.