Speculators and more aggressive traders usually seek assets with higher volatility, which often are illiquid markets. Day traders favor liquid markets as they want to get in and out of a trade quickly and without keeping open positions overnight. Large-scale traders and high-frequency trading firms prefer highly liquid markets, although the latter thrive on volatility as well. Institutional and small investors, alongside retail traders, also favor liquid markets with stable prices. All-in-all, liquidity is a determining factor for market participants on whether to invest in a particular asset class.