In virtual trading, liquidity is an extremely critical factor. Simply put, it refers to the ability of an asset to be traded quickly with low costs and small price fluctuations. In a market with high liquidity, the bid-ask spread is small, orders can be matched quickly, and investors can execute trades close to the market price, resulting in high trading efficiency.
Insufficient liquidity can lead to larger price spreads, slower execution speeds, and can also amplify price fluctuations, increasing trading risks.