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Liquidity refers to how active a market is. It is determined by how many traders are actively trading and the total volume they’re trading.
Liquidity is considered “high” when there is a significant level of trading activity and when there is both high supply and demand for an asset, as it is easier to find a buyer or seller.
If there are only a few market participants, trading infrequently then liquidity is considered to be “low” (e.g. market opening or rollover).