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Most of the local traders I know are swing traders so intraday liquidity doesnt mean to much to them.
Intraday traders are a rarer breed here. With low liquidity its hard to move your contracts.
What i mean in b) normality of price distribution i mean in terms of statistical distributions.
For those who follow MP theory and the price distribution "bell curve", you need a certain number of events to be recorded to assume any distribution follows a normal distribution. I'm not sure in general how normal an exchanges price distribution is but I'm pretty sure that for rudimentary statistical analysis of price distribution once you pass a high enough count of events (i.e contracts being traded) you can assume a normal distribution of price on any given day. |
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In my OPINION, It's very difficult to say though that liquidity concerns are directly related to # of contracts traded per day....for all contracts.
If you watch the DD contract (the big dow) this tracks YM very closely almost at all times....even on the BIG DROP day we just had.
I don't understand the technical reasons why an intra-day speculator like me can easily trade with the DD contract even though it does 60 contracts per day.
I think it depends on the type of liquidity provider (market making) in the contract.
Contact the exchange directly.
(I still have no idea what b) MP thoery means. It looks like engineering language to me. Alot of the stuff you guys talk about on this forum goes over the top of my head. (I have no university education) Nonetheless I learn alot from you guys on this forum. I'm a very basic kind of guy...'a speculator born from the street' so to say.) I barely trade with a system as it is but I can make money.