Capital Spreads. http://www.financial-spread-betting.com/Spread-betting-AIM-stocks.html Are stocks with small market caps riskier to trade? Angus of Capital Spreads http://www.financial-spread-betting.com/ccount/click.php?id=3 comments. It can be more risky because sometimes we see if there is a mass liquidation of positions in small caps. It is not just spread betters or cfd traders trying to get out, it is other share investors. In particular if a stock is illiquid and there is a huge mass sell-off that can really push the market than it should probably. So trading illiquid stocks can be riskier.