United States USA

Limited liquidity

Ustocktrade has a unique trading platform that internalizes all customer orders. This means we trade at or inside the NBBO (the consolidated best bid and offer prices across all the public exchanges) but we do not route customer orders out to the public exchanges. This model helps us to avoid many of the clearing and exchange fees of other broker dealers, allowing us to only charge $1 per trade. Additionally, since the buyer and seller are both on our platform, we can provide T+0 settlement.


Providing T+0 settlement means we must have shares to deliver on the day the trade is executed. If the shares are not available, the stock will be designated as limited liquidity and while users temporarily may not be able to buy this stock, they are always able to sell a stock designated as Limited Liquidity.


If Ustocktrade is able to obtain a finite number of shares, that inventory will be available as liquidity for buy orders, and once utilized, the stock will then be designated as “Limited Liquidity”.


If a Limited Liquidity stock is sold by Users, those shares are available to be purchased by other users, and the symbol will no longer be designated as Limited Liquidity.


As a result of these scenarios, you may see certain stocks fluctuate to and from Limited Liquidity throughout the day as Users buy and sell.


Some of the common characteristics of symbols which have a higher probability of being designated as Limited Liquidity:


  • Stocks with a small market capitalization
  • Stocks with a small amount of shares outstanding
  • Stocks with a small amount of shares in the public float
  • Stocks with limited trading activity
  • Stocks which have had a reverse stock split recently
  • Stocks designated as Threshold Stocks by the Exchanges


Please read our Liquidity and Trade Execution disclosure

More questions? Contact us.

Please read important legal disclosures.

Online trading has inherent risk due to system response, execution price, speed, liquidity, market data and access times that may vary due to market conditions, system performance, market volatility, size and type of order and other factors. An investor should understand these and additional risks before trading.

The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The information provided should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Consider the investment objectives, risks, charges, and expenses of a fund before investing. Contact us for a prospectus containing this information.

Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund or Exchange Traded Fund (“ETF”) carefully before investing. Before investing in any mutual fund or ETF, you should consider its investment objective, risks, charges and expenses. Contact us at support@ustocktrade.com for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully. ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund. Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks. Some specialized exchange-traded funds can be subject to additional market risks. Leveraged and inverse exchange traded products are not designed for buy and hold investors or investors who do not intend to manage their investment on a daily basis. These products are for sophisticated investors who understand their risks (including the effect of daily compounding of leveraged investment results), and who intend to actively monitor and manage their investments on a daily basis.

Testimonials may not be representative of the experience of other customers and are no guarantee of future performance or success.

Market data supplied by ActivFinancial. Real-time market data is only supplied when User logs into his or her account.

Securities lending involves the risk of loss if the borrower fails to return the security loaned or becomes insolvent. Investment value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Not all securities and account types are eligible for the Fully-Paid Securities Lending Program. You should consult a tax advisor regarding the tax implications of lending securities and the receipt of substitute payments under applicable tax laws.

Securities products and services offered to self-directed investors through Ustocktrade Securities, Inc. Member FINRA / SIPC. Ustocktrade is the brand name of Ustocktrade LLC. Ustocktrade LK (Private) Limited, Ustocktrade Finance, LLC and Ustocktrade Securities, Inc. are fully-owned subsidiaries of Ustocktrade, LLC.

Securities products are: Not FDIC insured · Not bank guaranteed · May lose value

FINRA BrokerCheck reports for Ustocktrade Securities are available at finra.org/brokercheck

You must be a U.S. resident to open a brokerage account. Other account features are available to non-US residents.

Ustocktrade Securities, Inc.
V.03 03/04/2021

© 2021 Ustocktrade. All rights reserved. U.S. Patent:US D761,294 S.

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