What's the minimum liquidity needed to get in and out a stock fairly easily?

Discussion in 'Trading' started by AimHighWillis, Jul 1, 2018.

  1. Say if my order size is 1% of the average daily volume, would I be able to get my order filled fairly easily (not needing to chase the ask or bid)? If not then what's the minimum threshold? Thanks in advance.
     
  2. You do mean maximum, right? In general, you can assume that your price impact will be proportional to the square root of the volume participation. Trading size is hard.
     
  3. dozu888

    dozu888

    if you have to ask, then it's not a problem you need to worry about
     
    Gotcha and dealmaker like this.


  4. Q:
    What's the minimum liquidity needed to get in and out a stock fairly easily?
    A: 1 share.
     
    AlphaTango and Secret Santa like this.
  5. boba15

    boba15

    Considering 2 parallel universes:
    1. In one you take liquidity with a 100 shares lot
    2. In another, at the same moment in time, with a 1000 lot.

    Would then the charts for the rest of the day:
    1. Be the same (price will snap back)
    2. In the universe 2 the chart will be shifted by the slippage you get on the large lot
    3. Or will charts be completely different and not resembling each other?