Anyone have a minimal liquidity level that an equity needs to be above before considering it to use in your system (development teseting or implementing live) ?
Is there a price-neutral metric that is easily obtainable? That is, average or daily volume of 10,000 per day is not the same for a $2.00 stock vs. an $80.00 stock, so the common volume metric is not helpful.
So, does anyone use a price neutral metric or something other than common volume? Price x vol i guess works for relative comparison purposes. In that case, 400,000 volume on a $2 stock would be about the same as 10,000 volume on an $80 stock.
What is your minimum volume threshold, if you have one, to consider a stock liquid enough for trading?
meegwell
Is there a price-neutral metric that is easily obtainable? That is, average or daily volume of 10,000 per day is not the same for a $2.00 stock vs. an $80.00 stock, so the common volume metric is not helpful.
So, does anyone use a price neutral metric or something other than common volume? Price x vol i guess works for relative comparison purposes. In that case, 400,000 volume on a $2 stock would be about the same as 10,000 volume on an $80 stock.
What is your minimum volume threshold, if you have one, to consider a stock liquid enough for trading?
meegwell
