Liquidity

Liquidity - How easily an asset can be bought or sold at near-current prices. In forex, major currency pairs (like EUR/USD) have high liquidity (lots of buyers/sellers) with tight spreads. Exotic pairs (like USD/THB) are thinly traded and less liquid. High liquidity means orders can be filled quickly without large price moves; low liquidity can cause slippage. The forex market is generally very liquid overall.