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RE: SEC S18-W4 || Mastering Liquidity Levels in Trading
Nice entry. Referring Order book is must needed to understand how the liquidity in a asset. Crypto exchanges like binance and gate.io has lot liquidity than other crypto exchanges. In binance and gate.io we mostly get buyers and sellers close to a current price that means it will not effect the current price. However, in other exchanges there is big gap we see in buyers and sellers like if a current price is $ 10, we see seller at $ 12 and buyer is on $ 9, means if we try to buy by market price we will get at $12 instead current price $ 10 and then if we sell it at $ 9 we will in loss of $ 3. Addtionally we can see how price is affected between $ 10, $ 12, $ 9.
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Thank you for the insightful comment! You make an excellent point about the importance of referring to the order book to understand liquidity in an asset.