Market Potential

Discussion in 'Trading' started by Ripley, Jul 28, 2005.

  1. The potential of a market depends on the range it has, as well as liquidity.

    Is there a way to calculate this, because everywhere I hear of the range of the market in association with how tradeable that market is.

    For ex: ES, not much range but huge liquidity.
    QM, there is range, but no liquidity.

    But, which one has more potential to be traded intraday, where can you move the most contracts a long ways?
     
  2. Ripley,

    This question is too broad and this is probably why you are not getting an answer. This is a lot like asking if you should buy a car with an automatic or manual transmission. It depends on a whole lot of stuff including your style, skill, duration in trades, size to be traded, exchange rules/limitations (barriers to entry and other trading regulations),etc.
     
  3. =================
    Ripley;
    a] Believe or not ,futures/options arent suitable for all investors;
    z] Russ2k= plenty of range/trends,
    plenty liquid,CME/EUREX-US:cool:
     

  4. WOW... FuturesTrader71, Yet Again, I don't think anyone could've said it any better.

    It has to depend on the personality as well as the style and risk tolerance of each trader etc.

    Oh well, I was just thinking of something and it felt that there is a formula for almost everything out there, but I found it odd that most people only takes into account range with a minor consideration for liquidy without worrying about a lot of other much more complicated factors.

    Keep it Simple !!!