crude oil spike

Discussion in 'Commodity Futures' started by sporky, Feb 5, 2008.

  1. sporky

    sporky

    ...and they should be raising hell for phoney price action, right?!
     
    #11     Feb 7, 2008
  2. I would very upset if I got stopped out in that. If it was just one position with 30 contracts bought at 90.30 it resulted in over a $20,000 loss in less than a minute. Ouch! However, if I had to buy 15,000 barrels of oil all at once I would be trading 15 CL's or WTI's instead of QM. Much more liquid...
     
    #12     Feb 7, 2008
  3. This type of order imbalance occurs from time to time on GLOBEX. Usually it's with less liquid contracts, but QM can be illiquid at times. If I remember correctly it has to do with the algorithm GLOBEX uses, and it will keep running up (or down) the price until it resets after a few seconds.

    I remember getting nailed by a spike like this on ER2 at 4:01 PM EST once, but the trade was later busted. However only some trades were busted, some people got nailed if they were outside the bust range.
     
    #13     Feb 8, 2008