Risk of Lower Liquidity. Liquidity refers to the ability of market participants to execute buy and sell orders with minimal price im- pact. Generally, the more orders that are available in a market, the greater the market’s liquidity. Liquidity is important, because great- er liquidity makes it easier for investors to buy or sell securities, and as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be lower liquidity in extended hours trading as compared to regular market hours. As a result, your order may only be partially executed, or not at all.
Risk of Lower Liquidity. Liquidity refers to the ability of market participants to buy and/or sell securities / contracts expeditiously at a competitive price and with minimal price difference. Generally, it is assumed that more the numbers of orders available in a market, greater is the liquidity. Liquidity is important because with greater liquidity, it is easier for investors to buy and/or sell securities / contracts swiftly and with minimal price difference, and as a result, investors are more likely to pay or receive a competitive price for securities / contracts purchased or sold. There may be a risk of lower liquidity in some securities / contracts as compared to active securities / contracts. As a result, your order may only be partially executed, or may be executed with relatively greater price difference or may not be executed at all.
Risk of Lower Liquidity. Liquidity refers to the ability of market participants to buy and sell securities. Generally, the more demand there is for a particular security, the greater the liquidity for that security. Greater liquidity makes it easier for investors to buy or sell securities, so investors are more likely to receive a competitive price for securities purchased or sold if the security is more liquid. Xxxxx stocks are often traded infrequently and have lower liquidity. You may therefore have difficulty selling xxxxx stocks once you own them. Moreover, because it may be difficult to find quotations for certain xxxxx stocks, they may be difficult, or even impossible, to accurately price. Risk of Higher Volatility. Volatility refers to changes in price that securities undergo when they are being traded. Generally, the higher the volatility of a security, the greater its price swings. Due to their lower liquidity, xxxxx stocks are subject to greater volatility and price swings. A customer order to purchase or sell a xxxxx stock may not execute or may execute at a substantially different price than the prices quoted in the market at the time the order was placed. In addition, the market price of any xxxxx stock shares you obtain can vary significantly over time.
Risk of Lower Liquidity. Liquidity refers to the quantity of buyers and sellers in the market of a security. Lower liquidity equates to fewer orders/shares available to be purchased or sold, thereby making it more difficult to obtain an execution. Highly liquid securities enable market participants to buy and sell securities more rapidly when entering a market order or marketable limit order. Generally, the more orders that are available in the market for a security, the greater the liquidity. Liquidity is important because with greater liquidity investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be lower liquidity in Extended Hours Trading as compared to Regular Trading Hours. As a result, your order may only be partially executed, or not executed at all, during Extended Hours Trading. ● Risk of Higher Volatility Higher volatility refers to larger price swings in securities. Generally, the higher the volatility of a security, the greater its price swings as compared to trading in the Regular Market Session. There is likely to be greater volatility in Extended Hours Trading than in Regular Trading Hours. As a result, your order may only be partially executed, or not at all, or you may receive an inferior price when engaging in Extended Hours Trading than you would during Regular Trading Hours.
Risk of Lower Liquidity. Liquidity refers to the ability of market participants to buy and sell securities expeditiously at a competitive price and with a minimal price difference. Generally, it is assumed that the more numbers of orders available in a market, the greater the liquidity. Liquidity is important because with greater liquidity, it is easier for investors to buy or sell securities swiftly and with a minimal price difference, and as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be a risk of lower liquidity in some securities as compared to active securities. As a result, your order may only be partially executed, or may be executed with a relatively greater price difference or may not be executed at all.
Risk of Lower Liquidity. Liquidity refers to the quantity of buyers and sellers in the market of a security. Lower liquidity equates to fewer orders/shares available to be purchased or sold, thereby making it more difficult to obtain an execution. Highly liquid securities enable market participants to buy and sell securities more rapidly when entering a market order or marketable limit order. Generally, the more orders that are available in the market for a security, the greater the liquidity. Liquidity is important because with greater liquidity investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be lower liquidity in Extended Hours Trading as compared to Regular Trading Hours. As a result, your order may only be partially executed, or not executed at all, during Extended Hours Trading. ● Risk of Higher Volatility Higher volatility refers to larger price swings in securities. Generally, the higher the volatility of a security, the greater its price swings as compared to trading in the Regular Market Session. There is likely to be greater volatility in Extended Hours Trading than in Regular Trading Hours. As a result, your order may only be partially executed, or not at all, or you may receive an inferior price when engaging in Extended Hours Trading than you would during Regular Trading Hours.
