Ratio

Liquidity Ratio: What It Is & How It Affects Forex Trading

5 min read

Liquidity ratio forex is an important tool used to measure a forex trader’s ability to manage their liquidity and stay ahead of the markets. It is a measure of the trader’s ability to provide enough funds to meet current obligations and keep their accounts liquid. The liquidity ratio also measures the influence of leverage on a trader’s performance, as well as the overall risk of a trader’s portfolio. It is important to have a good understanding of liquidity ratios when trading forex, as this can help traders stay in control of their capital and plan their trades ahead of time.