How Does the Concept of ‘Liquidity’ in Options Trading Compare to Transaction Flow in a Congested Mempool?
In Options Trading, liquidity refers to the ease with which an option can be bought or sold without significantly impacting its price. In a congested Mempool, transaction flow is hampered by high fees and competition.
High liquidity in options is desirable for smooth trading, whereas high congestion in the Mempool is undesirable, causing friction and price volatility for transaction inclusion.