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CoinDesk (@CoinDesk): RESEARCH: Liquidity is not what the order book shows. It is what capital actually does. Three signals, three different answers:

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RESEARCH: Liquidity is not what the order book shows. It is what capital actually does. Three signals, three different answers: Depth: a hint, since quotes can be posted and pulled at no cost Volume: activity, but notional, often leveraged, and inflatable Open interest: committed capital, margin locked and paying funding

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