Kamis, 25 September 2014

SPREAD BETTING IMPACT MACROECONOMIC DATA TO THE LIQUIDITY OF CALENDAR SPREAD

         
         Time to enter the macroeconomic data is always an important moment for all market participants. At that time, the market for which the specified concerned, there is a significantly increased volume of orders. On the market there are the banks, hedge funds, corporations, speculation companies and individual traders. During the shows the important data outrights (ie the underlying - for example, oil and S & P500 ) carry significant moves. Not once they reach 100 pips in a matter of seconds or minutes. Sometimes its directional movements - only one way. Other times you can watch the traffic up and for a moment the same downward movement. Scenarios can be different.
     

           For Future Traders on calendar spreads time of economic data is also very important. Frequently at this time on the market begins to significantly increased liquidity. It is very important that, despite the increased liquidity, market volatility has not increased significantly. This is very good information for traders and speculators.
          Experienced trader on the spreads markets during the shows of macroeconomic data puts the orders in the market trying to take advantage of liquidity, which increases at this time.They not running away from the market before the fear that the market will perform big moves up or down. Most movements are small - market is still trading in narrow rang and trader using the using the high volume turns futures bid/offer.
   

            Due to the rise liquitity significantly increases the chance of entry into and exit from the positions. When a calendar spread continues to move in the range of 3 - 4 pips despite the enormous growth in the volume, on the market we can place large orders to turn contract with one pips profit. Frequently during major economic data specific instrument can be turned several times within a few minutes of increased volume. The most favorable situation is when spread trading in the two points. Then the trader places the orders bid / offer and waits when liquidity will allow him to get the bid and offer (or vice versa). Turning the instrument several times a high lots can be very profitable.

           The picture below shows the orders window (without queue).
         

Tidak ada komentar:

Posting Komentar