How to determine a “Thin Market”?
Thin market is a market with a low number of bid and ask offers. It is distinguished by low liquidity, high volatility and high spreads because of the little amount of holding transactions. This market with its small changes can have a gripping effect on the prices of the Forex market. With such a small amount of buyers or sellers may be typically resulted in a larger spread between the quotes. The other name for a thin market is the narrow market; it is the opposite of the liquid market. Subsequently, because of few bids and asks offers are quoted, for possible buyers and sellers may be quite difficult to deal in a thin market.