Liquidity
Execution
Liquidity is the ease with which a trade can be executed without significantly moving price.
Liquidity is the depth of buy and sell orders available at or near current price. High liquidity means trades execute close to the quoted price; low liquidity means even small orders can move the market.
For prop traders, liquidity is critical for strategies that move significant size. The most liquid futures contracts (ES, NQ, CL) support meaningful prop-account size with minimal slippage; thinly traded contracts can produce slippage costs that destroy small strategies'' edge.
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