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    If you're interested in trading options, then it's a good idea to always look for options that are highly liquid. What does this mean? Basically, it simply means that there are lots of people all trading the same options as you. That's important, because it means there's plenty of supply and demand. If you need to exit a trade, you want to be reasonably confident there will be someone out there wanting to buy into it - and that's what liquidity gi
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    hat are highly liquid. What does this mean? Basically, it simply means that there are lots of people all trading the same options as you. That's important, because it means there's plenty of supply and demand. If you need to exit a trade, you want to be reasonably confident there will be someone out there wanting to buy into it - and that's what liquidity gi
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    s of people all trading the same options as you. That's important, because it means there's plenty of supply and demand. If you need to exit a trade, you want to be reasonably confident there will be someone out there wanting to buy into it - and that's what liquidity gi
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    s plenty of supply and demand. If you need to exit a trade, you want to be reasonably confident there will be someone out there wanting to buy into it - and that's what liquidity gi
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    ident there will be someone out there wanting to buy into it - and that's what liquidity gives you.

    There are plenty of options that only trade at low levels, and these are generally referred to as "illiquid" options. If you trade in illiquid options, and the market moves against you, it can be very difficult to exit your open positions. You might have to accept an even bigger loss, simply because you had to drop your price so much further bef

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