Tradoor
Tradoor Mini App User Guide
Tradoor Mini App User Guide
  • 👋Outline
  • 💱HOW TO TRADE ON TRADOOR
    • 🤔How do I make my first trade on Tradoor?
    • ⚙️How do I set up my wallet to start trading on Tradoor?
    • 💰How do I add funds to my Telegram wallet?
    • 📊Trading Perps 101
      • 🤔What is Perps Trading?
      • 🧭How to navigate Tradoor's Perps Trading Page
        • What does "Symbol" mean?
        • What does "Index Price" mean?
        • What does "24h" change mean?
        • What does "Open Interest" mean?
        • What does "Long/Short Rate" mean?
        • What does "1h Funding" and "1h Rollover" mean?
        • What does "Max Leverage" and "Average Leverage" mean?
        • What does "Available Liquidity" mean?
        • What does the Perps price chart mean?
        • What do the "long" and "short" button mean?
      • 🥇How do I make my first trade in Perps?
        • (1) Select between "Market Order" and "Limit Order"
        • (2) Enter the amount you would like to trade with
        • (3) Select the leverage you would like to trade with
        • (4) Have a look at your position
        • (5) Select your TP/SL
      • 🤑How do I make a profitable trade in Perps?
    • 📈Trading Options 101
      • 🧐What is Options Trading?
      • 🗺️How to navigate Tradoor's Classic Options Page
        • What does "Symbol" mean?
        • What does "Expiry" mean?
        • What does "Strike Price" mean?
        • What does the "Options Price Chart" mean?
        • What do "Call" and "Put" mean?
        • What do "Positions" and "History" mean?
      • ☝️How do I make my first Classic Options trade?
      • 🚸How to navigate Tradoor's DNT Options Page
        • What does "Symbol" mean?
        • What does "Expiry" mean?
        • What does "Strike Price" mean?
        • What does "Trigger" mean?
        • What do "Double No Touch Odds" mean?
        • What does the "Options Price Chart" mean?
        • What do "Positions" and "History" mean?
      • 🏆How do I make my first DNT Options trade?
      • 💰How do I make a profitable trade in Options?
      • 🎟️How do I use my Options Voucher?
  • ⚡Turbo Mode on Tradoor
    • ❔What is Turbo Mode?
    • 🌩️How do I start trading with Turbo Mode?
    • ✏️FAQs about Turbo Mode
  • 🌊ADD LIQUIDITY ON TRADOOR
    • 👀What is liquidity?
    • ❔Why add liquidity?
    • 🚰How to add liquidity to pools?
  • ❔Frequently Asked Questions
  • 🌟EARN REWARDS ON TRADOOR
    • 🎁What are $DOOR points?
    • 📊Earn rewards by trading
    • 👯Earn rewards by referring friends
    • 🏁Earn rewards by completing tasks
    • 🐂Earn rewards by feeding Sausage
  • 🤝GET CONNECTED ON TRADOOR
    • 👋How do I get connected on Tradoor?
  • 🛠️OTHERS
    • 🔮Oracle Data
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On this page
  • (H) Available Liquidity
  • FAQs
  • Definition of Available Liquidity
  • Importance of Available Liquidity
  • Factors Affecting Available Liquidity
  1. HOW TO TRADE ON TRADOOR
  2. Trading Perps 101
  3. How to navigate Tradoor's Perps Trading Page

What does "Available Liquidity" mean?

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Last updated 6 months ago

(H) Available Liquidity

FAQs


"Available Liquidity" refers to the amount of capital that is readily accessible for trading at any given time.

You can read more about liquidity in our “Liquidation” section, as well as our “Liquidity Pool” section.

Definition of Available Liquidity

Available liquidity represents the funds that can be used by traders to execute buy or sell orders without significantly impacting the market price. It reflects how much liquidity is available in the market for a specific trading pair or asset.


Importance of Available Liquidity

  1. Market Efficiency: High available liquidity typically leads to tighter bid-ask spreads, which reduces the cost of trading. This means traders can buy and sell more easily without experiencing large price fluctuations.

  2. Order Execution: When liquidity is high, large orders can be executed without causing significant slippage (the difference between the expected price of a trade and the actual price). This is crucial for traders who want to enter or exit positions quickly.

  3. Price Stability: Adequate liquidity helps maintain price stability. In a market with low liquidity, prices can become more volatile, as even small trades can lead to significant price changes.

  4. Trading Strategy: Traders often consider available liquidity when planning their strategies. A market with high liquidity may be more favourable for executing larger trades, while low liquidity might require traders to adjust their position sizes.


Factors Affecting Available Liquidity

  • Trading Volume: Higher trading volume generally correlates with higher available liquidity, as more participants are actively buying and selling assets.

  • Market Depth: The depth of the order book—how many buy and sell orders are placed at different price levels—affects available liquidity. A deeper order book means more liquidity.

  • Market Conditions: During periods of high volatility or market stress, available liquidity can diminish, making it harder to execute trades without impacting prices.

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Definition of Available Liquidity
Importance of Available Liquidity
Factors Affecting Available Liquidity