Measuring Liquidity in Futures Market question? - use of index futures tostructured products
Question No. 1:
How to assess the offer ask contarcts future is wide or narrow?
If the margin between supply and demand of any check contarct future is 1, then it means more liquid and actively traded? In addition, if the tick is 5 ticks is assumed contract.Do illliquid future you agree? Please enter your suggestions.If fell from 1 tick, the liquidity is decreasing.Please also true mean for me if I am wrong.
Question No. 2:
I Rsearch not say anywhere on the Internet and what is certain number of current interest and the volume is not seen as a liquid for the future Contarct (but open interest> Options contarct liquid is 1000). Why there is no I can not find any figures for the futures contarct? Take advantage of simply increasing the word "and" lower "interest in progress and the number is as atleast VOLUME.What basis? Write if you know the answer to my question. Speak of all kinds cntarct futures (index futures, forward contracts on interest rates, softd, crude oil, etc. ..)
Thank you.
Friday, February 19, 2010
Use Of Index Futures Tostructured Products Measuring Liquidity In Futures Market Question?
1 comment:
Question No. 1 - you should see the open interest to determine the liquidity of the futures contracts and buy / sell. At the simplest level, the higher the bid / ask of the higher liquidity
Question No. 2 - not of this number indicating that the market is liquid. Liquidity is relative and not absolute. lower volume markets can not be as smooth as the high volume markets as a major contract to greater price volatility in the market in small quantities.
each futures market is in terms of average daily trading volume variable and the normal supply / sale in markets where the liquidity is high and almost all the time in other markets tend to be more fluid and the whole time.
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