Trading Concept
Liquidity
How easily an asset can be bought or sold at the current market price without significantly moving that price.
Liquidity is the ease of entry and exit. A liquid market has many buyers and sellers at tight spreads — Bitcoin on Coinbase, Apple on NASDAQ. An illiquid market has few participants at wide spreads — an obscure prediction market on Polymarket, a rare card on TCGPlayer.
Liquidity affects every aspect of strategy performance. Slippage is higher in illiquid markets. Spreads are wider. Large positions are harder to enter and harder to exit. A strategy that works on liquid assets may not scale to illiquid ones.
The botwir3 adapter reports available liquidity through the platform data feed. The strategy module can use this data to adjust position sizing (smaller positions in illiquid markets) and execution style (maker-first in liquid markets, or cautious single fills in thin markets). The user configures these thresholds.