Futures market liquidity is an important topic that’s easy to overlook. However, if you’re going to prosper as an active trader, then understanding the concepts of market depth and order flow is critical. Let’s take a closer look at the leading factors that affect futures liquidity.
How Market Depth Analysis Can Boost Liquidity
When it comes to efficient trading, asset liquidity is of paramount importance. Fortunately for capital market participants, futures offer a wide variety of consistently liquid products. So how can you identify liquidity in the marketplace? There are many methods, ranging from relying on experience to applying technical indicators. However, one tried-and-true methodology is known as… Read more.
Capitalize on Market Volatility by Day Trading Futures
By definition, volatility is the variance of price action from a mean value over a specific period of time. Although many traders hesitate to engage the markets during especially active cycles, day trading futures can be a great way to secure profits. In fact, the enhanced liquidity and robust depth-of-market make active periods some of… Read more.
Stops and Liquidity
Stop orders can be used in futures trading as a great way to help manage risk and protect losses, lock in profits, or enter the market on a breakout. The downside to using stop orders, however, is slippage.