How does liquidity impact PNUT/USDT trading on Toobit?

How does liquidity impact PNUT/USDT trading on Toobit?

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Liquidity plays a crucial role in PNUT/USDT trading by determining how easily traders can buy or sell without causing significant price fluctuations. Higher liquidity means narrower bid-ask spreads, faster execution times, and lower slippage, making the trading experience smoother. Toobit provides a deep order book for PNUT USDT, ensuring traders can enter and exit positions efficiently. However, if liquidity drops, price volatility may increase, leading to unpredictable market movements. Traders should always check trading volume and order depth before placing large orders to minimize unexpected price shifts.