Futures are looking liquid

• Futures are looking liquid:You can now bet on (or against) water availability in California, which has a $1.1B spot water market.

 

Water futures... looking "liquid"?

Pun intended?

 

What water nonsense is this?

As of now,
H2O F21 volume is ZERO!!!
and open interest is only 9 !!!

Please get the fact right.

 

Then you say, "water ISN'T liquid"?

 

Well, milk isn’t, for example

 

Avoid these new futures products with very low volume at all costs.

 

This is the worst risk/reward that I personally am aware of. These new products with very low volume. Unless you are a commercial who is long the underlying and are perfectly willing to make good delivery - this is the kind of risk that blows you out.

I saw TransMarket Group get hurt quite badly with new catastrophic insurance contracts at the CBoT back in the nineties. The liquidity gaps are just insane.

 

So I read the contract definition and it's going to be settled with powdered water that has to be physically delivered. I am not sure how that works.

 

bit off topic but... I know a lot of health nuts view powdered water as being “less than”, but I’m just a sucker for the convenience. Just add a little water, shake and stir, and BAM you’re good to go. Don’t see myself giving it up anytime soon tbh.

 

Curious what do you add to powdered water to make it turn back into water? I'm studying finance at Hogwartz maybe I can help.