Unique Challenges For Microcap Traders
Microcap and nanocap stocks are characterized by very low share prices and a relatively limited float and thin daily volume. Since these types of stocks have such limited float and are so thinly-traded, these stocks are extremely volatile and very susceptible to large price swings.
Microcap and nanocap traders often trade in and out of positions with huge blocks of shares to make quick money on speculative events. And therein lies a problem that many microcap and nanocap traders face: with so little float available, thin volume and large block orders, there is a shortage of shares. In many instances orders only get partially filled.
Read more about this topic: Market Impact
Famous quotes containing the words unique and/or challenges:
“The unique and supreme voluptuousness of love lies in the certainty of committing evil. And men and women know from birth that in evil is found all sensual delight.”
—Charles Baudelaire (1821–1867)
“The approval of the public is to be avoided like the plague. It is absolutely essential to keep the public from entering if one wishes to avoid confusion. I must add that the public must be kept panting in expectation at the gate by a system of challenges and provocations.”
—André Breton (1896–1966)