Risk Warning: CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage.
Approximately 80% of retail client accounts lose money when trading in CFDs and spread bets.
You should consider whether you understand how CFDs and spread bets work and whether you can afford to take the high risk of losing your money.

Liquidity Trap

Lunaro Trading Team
05/03/2026
Category: Glossary

A liquidity trap occurs when low interest rates fail to stimulate borrowing or spending, limiting monetary policy effectiveness.