25% spread now8 Dec 2025 15:10
There is a reason the spread is so high. Please avoid. MMs are not "desperate for your shares" or any other nonsense. This is high risk, low liquidity. Buying in will make you the exit liquidity for all these helpful, friendly posters and you will be left well underwater. BEWARE.
What does a large spread indicate (especially on AIM)?
A large spread in AIM shares usually signals one or more of the following:
1. Low liquidity
AIM stocks are often small-cap companies with low trading volume.
When fewer buyers and sellers are active, market makers widen the spread to manage risk.
2. Higher risk
Wider spreads often appear in more volatile, uncertain, or speculative stocks.
Market makers widen spreads if prices could move quickly.
3. Higher transaction cost
For traders, a large spread means:
You pay more to buy
You receive less when selling
β harder to enter/exit without losing value immediately.
4. Market maker caution
If news is expected or the company is unstable, spreads widen because market makers do not want to be caught on the wrong side of a sudden move.
5. Small free float
Many AIM companies have relatively few shares available to trade, which increases spreads.
π§ Simple takeaway
A large spread on AIM shares usually means the stock is illiquid, risky, and expensive to trade.