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