What liquidity is

Liquidity is orders resting at a price. The two kinds of resting order, what each one does, and where they sit.

The answer to the last lesson is short. Orders were waiting at 2,431.

An order is an instruction

An order is an instruction you leave at a price. You do not have to be at your screen. When price reaches it, the instruction fires by itself.

Two kinds of resting order matter here.

A stop order fires at its price and closes a position. It takes a trader out of the market.

A limit order fires at its price and opens a position. It puts a trader in.

Both are instructions parked at a price, waiting for price to arrive.

The course is free. The account is only there to save your place and let us tell you when new lessons land.