What is liquidity grab?

1 lug 2023

The term ``liquidity grab” is often used to describe a market condition where market makers and other large institutional players aggressively buy or sell large amounts of currency in an attempt to take advantage of a sudden shift in market sentiment. This can cause a sharp spike in volatility and lead to even more buying or selling activity as other traders are forced to adjust their positions in response to the market movements

We refer it as fuel for the market, big institutional traders and market makers step in just after taking out retail traders.