Stocks with Low Volume

[Saluki]

0/NASD

Bid x size/exchange

$12.90 x 7/PSE

Ask x size/exchange

$32.14 x 1/NASD

 

 

I wonder if just putting in a good-till-cancelled low ball bid is a worthwhile strategy.  The above quote is from an illiquid stock that i have a very small position in.  Part of me thinks that maybe someone someday will get sloppy and do a decent sized market order and you will get a fill, but these good-till-cancel orders mean that with my broker I have to have funds available and just sitting in the account in case it gets filled.  Seems like it would tie up capital needlessly.  On the other hand:  March 2020.

[ValueArb]

4 hours ago, Saluki said:

0/NASD

Bid x size/exchange

$12.90 x 7/PSE

Ask x size/exchange

$32.14 x 1/NASD

 

 

I wonder if just putting in a good-till-cancelled low ball bid is a worthwhile strategy.  The above quote is from an illiquid stock that i have a very small position in.  Part of me thinks that maybe someone someday will get sloppy and do a decent sized market order and you will get a fill, but these good-till-cancel orders mean that with my broker I have to have funds available and just sitting in the account in case it gets filled.  Seems like it would tie up capital needlessly.  On the other hand:  March 2020.

 

I think you covered most of the issues with it. Another is when you leave a big limit order out at say, $13, hoping to pickup cheap shares, then sleep in the day they announce pre-market open that they are being bought for $9, and you wake up to find your order filled and you are sitting on a big loss.