During periods of high liquidity, typically when major financial centers like London and New York overlap, Forex traders can benefit from tighter spreads and faster execution of trades. High liquidity means more market participants, leading to more consistent price movements and reduced slippage. Traders can enter and exit positions more easily and at better prices, allowing for more precise trading strategies. Additionally, high liquidity minimizes the impact of large orders on the market, enabling traders to execute significant trades without causing sharp price fluctuations. By focusing on high-liquidity periods, such as major news releases or during peak trading hours, traders can enhance their profitability and reduce the risks associated with volatile, low-liquidity markets.