A penny stock typically refers to the stock of a small company that trades for less than $5 per share. This type of stock normally has high price fluctuation, low liquidity, and facing a higher chance of quit the market. Normally we do not suggest public investors trade this kind of stock.

1. How to trade penny stocks in the United States?

Penny stock is a type of stock, and its trading process, trading hours, and order type are the same as those of common stock.

Warm reminder: Because of the high risk of trading penny stocks, customers need to confirm the risk disclosure before trading it for the first time. They may continue trading only after completion of confirmation.

2. If the share price falls below $5, can it be traded?

When the price of US stocks falls below $5, they are considered penny stocks. When customers open new positions in these US stocks, they need to confirm the risk, but there are no restrictions on closing positions.

3. Do penny stocks support short selling?

Generally, short selling of penny stocks is not restricted. Please note that due to the perspective of risk management, Futu may adjust the short-selling limits and short margin rates of some penny stocks from time to time.

4. What are the risks of penny stocks?

Due to their nature of high volatility, Penny stocks may experience high price fluctuation

Penny stocks lack a liquid market with few buyers, perhaps even after their price has increased.

There is limited information available on the company's financial soundness or track record.

Penny stocks have a high probability of fraud and bankruptcy of the underlying company.

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Overview

1. How to trade penny stocks in the United States?
2. If the share price falls below $5, can it be traded?
3. Do penny stocks support short selling?
4. What are the risks of penny stocks?

Discussing

關稅風暴暫離高壓區！市場能否迎來反彈？

當地時間4月22日，美國總統特朗普公開承認美國目前對中國出口商品的關稅過高，預計稅率將大幅降低；美國財政部長貝森特也表示中美雙方關稅戰將很快降溫。4月25日，特朗普表示將爲不同國家設定「公平的」關稅稅率。特朗普此次對華關稅態度的轉變，能否平息市場恐慌情緒？關稅拉鋸戰最終結局如何？ Show More

Food流油

Apr 14 07:43

"Leaving the Group - Raising Taxes - Tweeting: The 'Money Making Strategy' of the Most Wild Gemini in Contemporary Times"

It's said that Trump is a walking drama machine, raising tariffs today and praising China tomorrow, making stock investors feel like they are on a roller coaster every day. But if you have seen hisThe Art of Trade, and then take another look at hisGemini horoscope—Wow! This guy's approach is simply the business version of "Empresses in the Palace", with every step marked by the four big characters "I want to make money".
The main core strategy in the book "The Art of Trade" is the combination of business thinking and the art of gaming.
Its core logic can be summarized into the following five dimensions:
1. The underlying logic of "creating momentum" and "the combination of reality and illusion".
The book emphasizes "always let the other party make the first offer" and "exaggerate demand to gain leverage."This strategy is often seen in tariff policies and trade negotiations.
[Example]
By imposing tariffs on various countries to create pressure, opponents are forced to the negotiation table, and then an agreement is reached through phased concessions.
II. Practical Application of the "Big Negotiation" Strategy
First, he scared everyone quite a bit, and then he gave a little reward.Imagine you are bargaining in a vegetable market, and Trump's approach is to first raise a loudspeaker and shout: "This pile of cabbage must be sold to me for 100 yuan today!" When the vendor is stunned, he suddenly rubs his hands and says: "But seeing that you are not having an easy time, let's settle for 80 yuan~"
[Example]
1. In 2018, tariffs were imposed on CN commodities, turning the global stock market into a green wilderness. Just when everyone was about to collapse, he suddenly signed a first-phase agreement and triumphantly tweeted: "No one understands deals better than I do!"
2. On April 2, 2025, ...

What is penny stock