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Monday, 20 May 2013

Will you get penalty if you trade in Illiquid share?



  • Many people have this fear that the will get penalty if they trade in illiquid share. It not true
  • This is a periodic call auction method ,no need of unnecessary fear about penalty.Penalty is applicable if you put a sell order at a price equal or below the price of your own buy order ( and vice versa)at a given time and it get executed.This means on both side of a trade ( buyer and seller) same trade code which resulted in price fixation by a single party .
  • So dont worry about penalty,this is to stop the price manipulation being done in illiquid share by people.




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