I want to daytrade crude but want to know which has the highest volume & liquidity. . . the CL or QM ? Which is best to actively trade ? Ross
CL by far, like 450k a day on ave. (QM about 15k a day on ave). and the CL intermonth spread trading are pretty big, Like 70k spreads per day on the two front months. However, QM tend to follow the CL, So if have under 50k in you'r account i suggest QM (trade them during the nymex pit hours). BTW: CL is a Physical settle contract, the QM is a Cash settle contract. this a very dangerous market right now. I wish you the best.
If you want to trade QM why not just trade the real deal (CL). Much higher volume, and only .01 spreads instead of .025 . Rolling over before settlement shouldn't be an issue.
CL is a pro trade! I love it when the book gets a sweep! That is if you are on the right side...I sold a level today then looked over at a Bond trade looked back and the thing was 40 cents lower! You can get run over or make a lot of $. Today was also Novie exp so people have been taking stuff off the last couple of sessions.
I would. Made me lose my money twice as quick and figure out that oil sure as hell wasn't the vehicle for me.
Great advice for someone who does not even know the contract specifications, ya' gotta love all the help you get on this board.
I asked the question, but I'm receiving conflicting and unclear replies. Which is best for short term trading ?
Start with QM if you want to live to see a second day trading Crude, make sure you use stops. http://www.nymex.com/emi_overvi.aspx
whatever market you can use your edge whatever that may be and get out with discipline, that holds true in any trade...I trade Equity, Fixed Income/Cash and Energy futures some days some markets are better than others. Surdo makes an excellent point anyone who trades for longer than a couple of years especially in futures learns to have a STOP and stick with it and live another day.