In the Hong Kong stock market, penny stocks refer to stocks that trade for low prices (Futu defines stocks trading for less than 1 HKD as penny stocks). Penny stocks feature significant price fluctuation, poor liquidity, and higher probability of delisting, making it inconvenient to obtain accurate information. Normally, ordinary investors are not recommended to buy penny stocks.
Penny stocks, as a type of stock, trade in an normal way in terms of trading process, trading hours, and order types.
Notes: Due to the high risk, if it is your first time to trade penny stocks, you need to confirm the risk during the trading process before you can trade.
If a stock's price falls below 1 HKD, the stock will be deemed as a penny stock and you can close your position. If you open a position and it is your first time to trade penny stocks, you also need to confirm the risk first.
● There is no daily price limit on Hong Kong stocks, and prices of penny stocks may fluctuate greatly within a day;
● Penny stocks are generally traded lightly and have high liquidity risks;
● The delisting risk of penny stocks is greater than that of ordinary stocks.