Beginner7 min readApril 2, 2026
What is Liquidity in Trading? ICT Explanation
Liquidity is the foundation of ICT trading.
Framework note: ICT terms are interpretations of price action, not proof of institutional motives or a market algorithm’s intent. No setup is guaranteed. Test clearly defined rules, account for costs and slippage, and use risk limits before risking capital. Read our editorial policy.
Liquidity refers to clusters of stop-loss orders that institutions need to fill their massive positions.
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