How it works
Major currency pairs usually attract more activity than less-traded crosses, but liquidity also varies by time of day and market conditions.
What to check
Look beyond daily turnover labels. For a retail trader, the practical signs are spread width, available size, execution quality and how those change during stress.
- Watch spread and depth
- Compare normal and stressed conditions
- Consider time-of-day effects
Limits and risks
Liquidity can disappear quickly around shocks. A market that is normally easy to trade can gap or widen enough to make stop execution materially worse.
Primary sources
BIS 2025 Triennial Central Bank Survey↗FCA: Contracts for difference (CFDs)↗General information only. Investment products can lose value, and terms, fees and regulation can change.