SPI futures - liquidity risk

Discussion in 'Index Futures' started by rsi80, May 20, 2013.

  1. rsi80



    These days, the Aussie SPI futures typically has a daily RTH volume of around 20k.

    For a discretionary trader, what do you think is the maximum position size one can have without incurring excessive liquidity risk (ie, not being able to cut loss in a hurry due to lack of liquidity)?

    Your feedback, please!
  2. toolazy


    < 1 contract :)

    if you are pain in the ass (making too much profit), they will sort you out, oldfashioned aussie way.

    If you dont trade on margin and have no stops you will be fine.

    Else, be very careful. In my opinion not much retail in SPI so wil be you against them.

    Why do you wan to trade that contract?

    If you can live with that possibility, I'd say 100 daytrade is easy, assuming you happy to take couple of points slippage. But then not much daily range left. I only played couple contracts.