Liquidity Risk

Liquidity Risk

Liquidity risk was on the table today as the stock market saw its lowest volume day since the week between Christmas and New Years Eve last year. There were very few stocks trading enough volume today to even look at. NFLX and FB were the notable exceptions today barely. This was a day where theta decay was in your favor. When liquidity is this low you have to take all the market action with a big grain of salt. Let's take a look at why you shouldn't trust a quiet market.

Spread the love

Comments are closed.