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Old 03-10-2007, 02:36 PM
The Bear The Bear is offline
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Re: Contract volume
Quote:
nsitt
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On any one market what would be the minimum number of contracts traded per day (on average) that you would prefer to see to create enough:

a) liquidity
b) normality of price distributions for statistical purposes such as MP theory etc.

Here in Aus our markets are comparatively low in volume compared to Asian or US markets with around 6-10 thousand contracts on average being traded per day.

Cheers guys
For a) it depends on what kind of activity you are doing. Is this for intermediate term trading...meaning weeks holding time. Is this for intra-day trading? I don't understand what b) means.

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