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Thinly Traded

Thinly Traded Definition

Thinly Traded or illiquid is an asset that is traded infrequently and/or in low volumes. These kinds of securities are usually traded in small batches and they are usually subject to substantial changes in price. Their prices are volatile because a small change in demand can have a large impact on the price.


Additional meaning of Thinly Traded:

Thinly-traded bonds or stocks may be difficult to sell in a downturn as they often have a limited number of interested buyers.


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