The article explores how different factors affect market liquidity by using a simulation model of an artificial market. It discusses the relationship between market liquidity and market efficiency or stability. The researchers found that an increase in the ratio of market participants following short-term market price movements leads to more trades but less order flow volume. When traders become more risk-averse, market liquidity decreases. A sharp drop in market liquidity happens when traders lose confidence in future price expectations. Changes in how traders react to market information impact market liquidity, but different liquidity indicators may not always move in the same direction.