Price Volatility
Small market orders can create large price movements when liquidity is withdrawn and spreads are wide. A buy market order during a liquidity gap can cause the price to jump to a much higher available sell offer. A sell market order during…
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Small market orders can create large price movements when liquidity is withdrawn and spreads are wide. A buy market order during a liquidity gap can cause the price to jump to a much higher available sell offer. A sell market order during a liquidity gap can cause the price to drop to a much lower available buy offer. Significant volatility can occur without a fundamental change in trading sentiment.