Unusally wide spread

Discussion in 'Trading' started by stockstalkerv3, Mar 25, 2011.

  1. Unusually wide spread in a stock. To your experience, what does it mean? How did it affect the subsequent behavior of the stock you were trading?
  2. 1) The stock is relatively illiquid/inactive.
    2) There may be a major news item pending that is scaring traders away until after the release.
    3) It's better to trade high-volume stocks in order to avoid slippage and rape-age in those issues. :cool: