There may be case when few stocks on a particular stock exchange may not have large volumes of trades. This is not a rare scenario; there are many counters (shares) who have low volumes. If one tries to buy or sell large quantities in these shares, the price change will be quick and may go far in a particular direction depending on what are we trying to do – buy or sell.
Trying to do so may result in a higher cost.
If we are trying to buy large quantities, the rates may rise quickly and our cost of buying may go up – there is also a possibility that we do not get the quantity we desired to buy initially.
If we are trying to sell, the rates may fall rapidly and we are not able to sell at a good rate impacting our total sales proceeds – adding to our losses or driving our profit lower.