Why I’d Watch Liquidity
24/7 trading sounds great, but availability alone doesn’t make an instrument efficient.
If I’m evaluating a bStock, I’d also look at trading volume, spreads and how easy it is to enter or exit a position.
This is especially important because the liquidity of individual tokens can differ considerably.
So my checklist wouldn’t stop at “Can I trade it now?” I’d also ask, “How efficiently can I trade it?”
24/7 trading sounds great, but availability alone doesn’t make an instrument efficient.
If I’m evaluating a bStock, I’d also look at trading volume, spreads and how easy it is to enter or exit a position.
This is especially important because the liquidity of individual tokens can differ considerably.
So my checklist wouldn’t stop at “Can I trade it now?” I’d also ask, “How efficiently can I trade it?”