Miro Zecevic

The ease with which you may sell an investment or asset at a reasonable price is referred to as liquidity. Liquid assets are those that can be exchanged for cash: - Quickly and easily - With little or no transaction fees - At their current market prices (i.e., without having to entice a buyer with a big discount) Something is more liquid in general if: - Many individuals would be interested in purchasing it; - It's simple to determine its value; - It's simple to transfer ownership from one person to another; - The object or investment is more standardized (i.e., less unique) A share of Apple stock, for example, is liquid because it's simple to buy and sell, and many people would want to possess it at the proper price. You can figure out how much it's worth by looking at the stock market's current pricing. Furthermore, the corporation has billions of outstanding shares, therefore it isn't unique. A piece of custom-designed luxury real estate, on the other hand, i...

Have you ever traded penny stocks with a small account only to be frustrated when it came time to make another trade? Many people who invest in small-cap stocks are concerned by the Pattern Day Trade regulation. To purchase and sell penny stocks or higher-priced stocks within a single day and more than three times during a rolling 5-day period, traders must have at least $25,000 in their trading account. In many circumstances (depending on your broker), you may avoid this by using a cash account.You can make as many day trades (buying and selling in the same trading session) as you like.However, you can only use the amount of settled funds in your account. You must be mindful of settlement time-frames if you trade penny stocks.Your money will usually be settled two business days following the trade date (T+2).That implies you'll have to wait a few days after selling out of your transaction before you may trade with those funds again. The "benefit" is that you are "fo...