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.
What's the minimum liquidity needed to get in and out a stock fairly easily?
- Thread starter AimHighWillis
- Start date
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.
if you have to ask, then it's not a problem you need to worry about
Q: What's the minimum liquidity needed to get in and out a stock fairly easily?
A: 1 share.
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?
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?
