Liquidity

Liquidity refers to the market selling and buying activity. The more liquid market

is easier it is to sell or buy stock or currency. If market doesnt not offer

enough liquidity speculator with enough money can move markets in

either direction. High liquid market means that big amounts of money

does not affect prices so easily. So be carefull to invest or trade in

high liquid market or you might get burrned.

Forex and other markets

Forex isnt the only market of financial markets. Other markets are: gold, oil, stock and bond.

There is a lot of misinformation about connections between these markets.

You can always find some correlation between how currency markets move

in correlation with stock markets.

All in all, keep in mind that markets function according to their own supply

and demand, news and investor sentiment. Sometimes markets overlap

and it looks like they are running in some kind of correlation.

It is necessary to look each of these markets on its own, and trade them

seperately.