Liquidity and Spread#

Liquidity measures how easily an asset can be bought or sold without significantly impacting its price. The more liquid a market, the easier it is to trade.

The spread is the difference between the buy price (ask) and the sell price (bid). A narrow spread indicates a liquid market. For example, the EUR/USD spread is typically 0.1-0.3 pips, while a small crypto may have a 2-5% spread.