◇ GLOSSARY
Liquidity
How much size the order book can absorb without moving price — depth at the touch and behind it. Thin liquidity means small market orders slip, liquidations move mark faster, and stops fill far from your trigger.
Liquidity is the gap between the price on your screen and the price you get when you actually need out. Perps feel liquid on BTC in New York hours; the same contract on a Sunday with macro headlines can trade like a small-cap stock.
Liquidation engines do not wait for depth to return. They send market orders into whatever book exists. One forced close that slips 0.5% can move mark enough to trigger the next account — that is how cascades start on thin tape.
Check depth, not just 24h volume. Volume can be churn; depth at ±0.1% from mid tells you what your stop or emergency exit will cost.