Why is there so low volume per minute in HO, RB, PA...?

Discussion in 'Commodity Futures' started by Hiperfly, Apr 6, 2014.

  1. Hiperfly

    Hiperfly

    Hello guys,

    I'm testing and backtesting a new strategy in some different futures and they do look very good in these kind of futures (Heating Oil, RBOB, Palladium, etc).

    Then I noticed that the volume per minute is 90% time below 100... Why is so volume? Anyone could trade this kind of futures, right?

    Thanks.
     
  2. Maverick74

    Maverick74

    Most of the volume in refined products is in the spreads which are VERY active.
     
  3. Hiperfly

    Hiperfly

    Hi Maverick, thanks for answering

    I'm new to futures so I don't know too much about this 'world' so, could you explain what do you mean with that? I don't understand, is the first time I hear about volume in spreads so I'm confused :confused:

    Then, there shouldn't be any problem if I want to trade that intruments right?

    Thanks again
     
  4. Maverick74

    Maverick74

    There are several spreads markets. With heating oil and rbob there are exchange listed crack spreads between them and crude oil. They have their own ticker. These are pretty actively traded. Also, the various heating oil and gasoline calendar spreads which also have their own markets. For example, march heating vs April heating oil. Energy is a very fundamentally driven market so the various spreads all express a fundamental view about a certain product and therefore they are more heavily traded then the outrights.
     
  5. 1) WRONG! :mad:
    2) Stop "researching" those three markets right now. The liquidity for trading outrights is horrible. :(
    3) What you think you "see" on the price charts doesn't "happen in reality". :confused:
    4) You'll think you're being savaged by a school of piranhas if you attempt to trade those. :eek: