Finding the most liquid market?

Discussion in 'Trading' started by J-S, Nov 6, 2002.

  1. J-S


    I've got a list of 26 different markets that I'm looking to trade or at least follow & I'm a bit stuck - I want to be looking at the most active exchanges based on volume / open interest.

    Is there an easy way to find out which markets are the most liquid? It would be a nightmare to have to search for each one individually amoungst all exchanges!!!

    I've listed the markets that I'm following below

    1. British Libor
    2. British Pound
    3. Canadian Dollar
    4. Coffee
    5. Copper
    6. Corn
    7. Cotton
    8. Crude-Oil
    9. Euro
    10. EuroDollar
    11. Gold
    12. Japanese Yen
    13. Live Cattle
    14. Lumber
    15. NYSE Composite Index
    16. Orange Juice
    17. Palladium
    18. Pork Bellies
    19. S&P 500 Index
    20. Soybean Oil
    21. Swiss Franc
    22. T-Bills
    23. T-Bonds
    24. T-Notes
    25. Unleaded Gasoline
    26. Wheat

    thanks if anyone can help!

  2. Funster


    Im guessing you are swing trading these commodities so your complete question really is "which ones are liquid and also trend". I used to do this (until I got fed up of being screwed on the NY exchanges) so:

    1. British Libor - No.
    2. British Pound - OK, but choppy. Trade Euro/Yen/Franc instead
    3. Canadian Dollar - Yes
    4. Coffee - Yes but beware strong limit moves & gaps
    5. Copper - OK - better to follow gold/silver though
    6. Corn - Good, very small contract size
    7. Cotton - Very Good
    8. Crude-Oil - Good. Be careful of API report days though
    9. Euro - Very good
    10. EuroDollar - Very liquid, boring most of the time, but can be a
    strong trender
    11. Gold - Historically a little difficult, but probably best contract to have your metals section covered
    12. Japanese Yen - very good
    13. Live Cattle - OK, a bit seasonal
    14. Lumber - Does trend but can do nothing for long periods
    15. NYSE Composite Index - I would stay clear of stock indicies for commodity trend trading. They exhibit too much random behaviour
    16. Orange Juice - I didnt really get on with the old juice.
    17. Palladium. Not liquid. For the suicidal (or Russians with inside info!)
    18. Pork Bellies. The classic. I have had some good moves on it. Fairly liquid but chops sometimes.
    19. S&P 500 Index. Forget it, as above.
    20. Soybean Oil. Good, small contract size. But no point trading all 3 of the soybean complexes unless you are spreading.
    21. Swiss Franc - Very good
    22. T-Bills - Illiquid
    23. T-Bonds - Very good
    24. T-Notes - Very good
    25. Unleaded Gasoline - Hmm, stick to crude oil. However look for leadership from this contract for the kick off of "summer driving season"
    26. Wheat - Good. Can be a little choppy.
  3. nusrat


    Every issue of TASC has a liquidity table.
  4. Pabst


    I agree with your ratings. Nice synopsis!
  5. Funster, your really are a funster. How did I know you would say that pork bellies chops sometimes.:p
  6. "15. NYSE Composite Index - I would stay clear of stock indicies for commodity trend trading. They exhibit too much random behaviour"

    I disagree - trade the minis. The trend is very real. 11000->8000
    on the dow. choppy but more to come on the downside (IMHO).

  7. Oh. This is an easy one...

    8. Crude-0il
    16. Orange Juice
    20. Soybean Oil
    25. Unleaded Gasoline

    These are the only ones which have liquid in them. Jeez, and
    everyone thought I was dumb... :D
  8. J-S


    That's an excellent help & gives me some good ideas about what to focus on. I've noticed that some of the markets are traded on more than one exchange - Is there anywhere that gives info on which exchanges are the more liquid for the markets I listed?

    Thanks again, I really appreciate it

  9. Aranha


    As far as I know, EUREX / LIFFE are the best ones!!!

    So, have you started trading those markets already? (Crude oil, coffee, soybeans...etc)

    Best Regards,

    #10     May 6, 2003