U.S. stock market liquidity 'abysmal,' adding to volatility risk

Discussion in 'Wall St. News' started by ajacobson, Feb 7, 2022.

  1. ajacobson

    ajacobson

  2. Millionaire

    Millionaire

    The article also talks about the thin depth in the e-mini S&P futures.

    The order book always thins out during volatility.

    This is simple math.

    If volatility increases but volume stays about the same, then the order back has to get thinner, no way around it.
     
    Last edited: Feb 8, 2022
    murray t turtle likes this.
  3. maxinger

    maxinger

    US index futures day range has been very wide.
    eg ave NQ day range is around 2.7%

    US index futures volume has been very high.
    eg ave NQ volume is around 700,000 / day


    high volatility & big volume ----> very good for day trading
     
    Last edited: Feb 8, 2022
  4. bookish

    bookish

  5. lindq

    lindq

    Math_Wiz likes this.
  6. %%
    LOL\that'$ a better example than his note about FB, as if NQ stocks have ever been real liquid.:D:D
    SPY, liquidity leader,, looks fine\even though if one gets on wrong side of overnite gaps, as a practical matter your liquidity + profit can get hurt .
    FB as WSJ noted on radio \got chewed by competition\ bad customer service\\censorship, may get more liquidity risk on downside............................................................