A Thin Market | Trading Lingo
A Thin Market | Trading Lingo
A thin market means not many traders actively trade a particular stock. It may also mean not many market makers are actively “making the market” for those stocks by providing a reasonable bid/ask spread. Thinly traded stocks can have 20-30 cent spreads which makes it very difficult to trade. These stocks often have a low float (few shares available to trade). When they experience strong demand, these stocks can quickly move 50-100%. They are worth watching for day trade opportunities.