Many people look at stock liquidity based solely on book liquidity. But that's where the problem lies.
What the market actually trades is available liquidity. The two are very different.
That's why sometimes large-cap stocks fluctuate as wildly as small-cap stocks. On paper, liquidity seems sufficient, but the actual tradable volume? It's far less. Retail investors are often deceived by this illusion. Large institutions have long figured this out — what truly influences prices is not the number on the books, but the volume that can actually be bought and sold in the market.
Assets like MARA are typical examples. They appear to have good liquidity, but when it comes to actual trading, you find that the available depth is limited. This is also why sometimes a single large order can shake the entire market.
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GasWaster
· 4h ago
On-paper numbers are all deceptive; true liquidity that can move is the real key.
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BtcDailyResearcher
· 4h ago
I've said it before, all the on-paper data is just a facade; true depth is the real key. For something like MARA, where a single large order can turn the tide, who would dare to hold a heavy position?
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LightningClicker
· 4h ago
Book numbers are all virtual; only those that can actually be traded are the true way.
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MEVHunter_9000
· 4h ago
On-paper liquidity is fake; real trading depth is the key. MARA's recent move is indeed easy to fall into traps.
Regarding MARA's Liquidity Dilemma
Many people look at stock liquidity based solely on book liquidity. But that's where the problem lies.
What the market actually trades is available liquidity. The two are very different.
That's why sometimes large-cap stocks fluctuate as wildly as small-cap stocks. On paper, liquidity seems sufficient, but the actual tradable volume? It's far less. Retail investors are often deceived by this illusion. Large institutions have long figured this out — what truly influences prices is not the number on the books, but the volume that can actually be bought and sold in the market.
Assets like MARA are typical examples. They appear to have good liquidity, but when it comes to actual trading, you find that the available depth is limited. This is also why sometimes a single large order can shake the entire market.