Low liquidity means small trades can cause massive swings in a stock's price.
Because many OTC stocks trade for less than $5.00 per share, E*TRADE classifies them as penny stocks. You must read and acknowledge a risk disclosure in your account settings to unlock permission to trade them. 2. Fund Your Account and Wait for Settlement buying otc stocks on etrade
Investing in the OTC market is highly speculative and poses several unique challenges: Low liquidity means small trades can cause massive