What liquidity means
Liquidity describes how easily an asset can be bought or sold without causing a large price change. A liquid market usually has more available orders near the current market price.
Volume is not the whole story
Reported trading volume can provide context, but volume alone does not prove deep liquidity. Users should consider order-book depth, spreads, trading venues and the quality of the market data.
Slippage
When an order executes across multiple available prices, the average execution price can differ from the displayed quote. This difference is commonly called slippage. It can be more noticeable in thin markets or during rapid price moves.
Why beginners should care
Liquidity affects how easily an asset can be entered or exited. Before making a transaction, understand the venue, available liquidity and fees instead of assuming the headline price is guaranteed.