Currency pairs with high spreads are those that have a significant difference between their bid and ask prices, which can make trading them more expensive. The spread is essentially the cost of trading and is determined by a number of factors, including liquidity, volatility, and trading volume. Pairs with low liquidity or limited trading volume tend to have higher spreads, as do those with higher volatility, such as emerging market currencies. This can make it more challenging for traders to execute profitable trades, as they may need to overcome the higher cost of trading to achieve their desired returns. It's important for traders to consider the spread when selecting currency pairs to trade and to manage their risk accordingly.

Currency pairs with high spreads usually involve less-traded or exotic currencies, such as USD/TRY, USD/ZAR, or EUR/SEK. These pairs have lower liquidity, meaning fewer buyers and sellers are active in the market, which increases transaction costs. Wider spreads often occur during volatile conditions, low trading hours, or when economic or political uncertainty affects one of the currencies. High spreads can make short-term trading less profitable since traders must overcome greater price differences to gain returns. However, some traders are drawn to these pairs for their larger price swings and profit potential. Understanding spread behavior helps traders manage costs and choose pairs that match their strategy, balancing risk, volatility, and potential reward effectively.