I just received a question: what is forex spread? Actually, this is a basic but very important concept that everyone needs to understand when starting trading.

The simplest way to understand it is to imagine you're at a market buying and selling goods. Someone says, "I buy apples for 90 rubles," and the seller responds, "I sell for 100 rubles." The 10 ruble difference between these two prices is the spread — it appears everywhere, from stock markets to forex and crypto.

Why is it important? Because the spread reflects the liquidity of an asset. The smaller the spread, the smoother the transaction, making it easier to find a buyer or seller. Conversely, if the spread is large, it means fewer people are interested in that asset, trading becomes more difficult, and prices can fluctuate sharply.

I see that understanding what forex spread is isn't much different — it operates on a similar principle, just applied to the foreign exchange market. Forex traders have to deal with spreads, just like crypto exchanges use the difference between buy and sell prices to make a profit.

If you follow coins like XRP, BNB, or ORDI, you'll notice that coins with higher trading volume usually have smaller spreads. That's why liquidity is important — it determines whether you can trade easily or not.