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General Terms and definitions
Some common terms and definitions related to the XRP Ledger and Xumm
XRPL - Stands for the XRP Ledger.
Account Secret - The Secret Numbers, Family Seed or Mnemonic for your account.
XRPL Labs - The company that created and developed the Xumm application.
Secret Numbers - The set of numbers that are displayed when an XRPL account is created using Xumm.
XRP Ledger has a native decentralized exchange (DEX) that lets anyone buy or sell any asset that exists on the XRPL. Since anyone can issue assets on the XRPL, the DEX is an incredibly useful and powerful tool. It is basically a global market place where buying and selling takes place at any time.
The spread is the difference between the bid and the ask prices of a token on the DEX. For example, if you place an order for 100 tokens for 100 XRP, but the current orders are for 100 tokens for 105 XRP, the spread is 5 XRP. You are bidding 100 XRP, people are asking for 105 XRP. The difference is 5 XRP.
Slippage is a crypto trading term that describes the difference between what was expected and what actually occurred. Slippage is the amount of money lost or gained as a result of market fluctuations while executing an order.
Liquidity is the measure of how easily you can convert an asset into another asset. It refers to the ease and speed with which tokens can be bought or sold without significant impact on its value. When a token has good liquidity, there are lots of buyers and sellers. If a token is illiquid, there are not many buyers and sellers and it can be very difficult to execute trades without having a significant impact on the price.
A market order is a transaction that tries to buy or sell tokens at the best available price on the DEX. If you are going to place a market order, you should review the charts and the order book depth before placing an order. Make sure that there is a market on both sides of the order book. This means lots of sellers and lots of buyers. If there is only a large number of sell orders, it means that you are trading in an illiquid asset.