| Trading high volume penny stocks offers you the | | | | are willing to buy your shares at up. They know that |
| opportunity to buy and sell large amounts of shares | | | | if they offer you less than the other market makers |
| without influencing the price of the stock. Large | | | | for your shares your broker will route your trade to |
| orders for a stock with low volume would move the | | | | the higher paying market maker. The same process |
| price, making it hard to fill your entire order at the | | | | takes place with y our buy order; the order goes to |
| price that you have set your limit at. In contrast, high | | | | the cheapest market maker. |
| volume stocks offer enough volume to swallow up | | | | A low volume penny stock usually only has one |
| any reasonable trade without changing the price. | | | | market maker handling the trading since there is not |
| Also as the volume increases for a penny stock | | | | enough business to convince other market makers to |
| more market makers join the action and set their | | | | make a market in the stock. Therefore, if you are |
| own bid and ask [buy and sell price] for the stock. | | | | looking to trade high volume, hot penny stocks, you'll |
| The competition between market markers is | | | | be able to take larger positions without having to |
| beneficial to investors since they are competing to | | | | worry about whether your order will be filled or not. |
| buy your shares and sell you shares. The competition | | | | And often is the case that you can trade the same |
| between market makers forces the price they are | | | | stock many different times over several months or |
| willing to sell you shares at down and the price they | | | | years. |