How many shares do you have to buy to drive up the price?

Panic!

Member
54 4
#2
When I was trading for a bank, I never traded more than 30% of volume to avoid driving op the price too much. Unless you're trading in low float/penny stocks I wouldn't worry about it too much.
 

NVP

Legendary member
36,176 1,763
#3
Just curious, I'm sure it's relative the number of shares already in circulation.

that can be a factor ......but much more to do with liquidity in the market and the willingness for buyers and sellers to actually trade ...............you can get some awesome moves if liquidity is light .......
 

hatemypips

Well-known member
279 6
#5
Just curious, I'm sure it's relative the number of shares already in circulation.
Depends on the market liquidity and exchange. If there is a market maker you won't be able to manipulate prices because they hold majority of shares.
 
#6
It depends on two key criteria: shares float and average volume. In some of the low float stocks it could be enough to buy 2k to move the price. That is why the traiding with such stocks could be difficult: the first problem is to create position without influnecing the price, and then another problem would appear: to close position without influnencing the price, especially when you need to get rid of your shares relatively fast. If someone will see the downward movement, he could also sell his shares, creating large movement.
This is one of the reasons why most of the institutional traders avoid such stocks. At the same time, they could provide interesting opporunities for retail traders understanding how it all works.
 

tomorton

Legendary member
7,124 922
#9
I'm assuming the topic starter was not considering trying to buy the price up, but rather making sure he would be able to avoid this.

Agreed.

In fact, I usually find that no matter how big or small my long position, price goes down.....
Maybe its just me.