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Re: Pros & Cons of Trading in Slow or Not-So-Liquid Markets.



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Gwenn Ael Gautier et al:

arb suggested that the placing of Stop Limit Orders might improve
the chance of getting better fills in the New York markets.

Would such a strategy also be good one in a slow or illiquid
market?

What do you see as the down side of a Stop Limit order as opposed
to a simple Stop Order.

Gwenn Ael Gautier wrote:
> 
> Nobody said trading is easy. It is where nobody ventures that you find the
> best opportunities. Otherwise, you are competing with hundred others for the
> same ticks. Yes, in illiquid markets you can be fooled around, and hence you
> should not attempt to daytrade, however trading at the open or the close only
> is not too difficult. Now just as benefits are potentially greater, so are
> the risks: There's no free lunch...
> 
> Gwenn
> 
> Desmond Sutherland a écrit:
> 
> > I would think that it is non-liquid markets that are prone to whipsaws
> > etc.  In a liquid market the bid-ask spread is fairly narrow and one can
> > get in and most importantly, GET OUT, fairly easily.  In a non-liquid
> > market, the bid-ask is very wide.
> >
<SNIP>