Scalpers: The jumpiness of illiquid stocks?

G

garchbrooks

I know that when the spreads are wide, stocks are jumpy. The question I have is -- are illiquid stocks more "spooked" by runs on the futures in general? i.e., is the MM covering his risk much more quickly just by virtue of the stock being even more illiquid?

I know what I've observed, but I just wouldn't mind hearing confirmation from manual scalpers who look at the book every tick of the day.
 
Quote from Esq Esq Esq:

MM?

those are dead my friend.

And yes. they are more Jumpy.

unless they have low Beta, or unrelated.
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I don't mean MM in the strictest sense, just whoever decides to provide liquidity in there.
 
Quote from trader#21:

all characteristics of the market are relative...
what is your basic style of trading and which stocks do you trade in?
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Nothing in particular, just started looking at the illiquid stocks with higher betas recently because I wanted to observe how the spread evolved through the day, when it collapsed, when the trades were racing in one direction, etc.
 
Quote from garchbrooks:

just started looking at the illiquid stocks with higher betas recently because I wanted to observe how the spread evolved through the day, when it collapsed, when the trades were racing in one direction, etc.
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replied through PM
 
Quote from stock777:

Great knowledge must be revealed only in small doses to the anointed few.

That's why.
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Thanks for making it sound funny.

But do remember when you're talking about your trading in illiquid stocks you wont like more competition with your fills.
 
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