Does order size matter?

[kuka2]

Just had a quick question, so I thought Id give it my second post

I was wondering if the size of an order you place on the market matters.

If I were to place an order for 1000 shares, on a stock that most people only buy say 300 shares of, would this make a difference to the market makers?

[jiesen]

sure it makes a difference. if your buy order is bigger than what the sellers are able to supply, then you'll wind up paying a higher price, or not getting filled completely. simple supply-demand, actually. works the same way in reverse.

This is why big institutions stay away from thinly-traded stocks, and how small guys like us make more money in these than we might be able to by trading the more liquid stocks (not as much competition for the bargains).

[dmk112]

That's why you always use limit orders...