Float versus shares outstanding
Float is the portion of shares actually available to trade, excluding closely held or restricted stock. A small float means less supply to absorb demand.
Why low float moves fast
When a catalyst brings heavy volume into a small float, price can travel a long way quickly, and reverse just as fast. Both directions are amplified.
Risk implications
Low-float names need smaller size, wider mental stops and full acceptance that slippage will be worse than in a large-cap.
Educational content only. TradeCaster does not provide financial advice and past results never imply future performance.