crude oil spike

[sporky]

Quote from brocklanders:

...that was not fun for shorts who got stopped out in that b.s.

...and they should be raising hell for phoney price action, right?!

 

[brocklanders]

Quote from sporky:

...and they should be raising hell for phoney price action, right?!

I would very upset if I got stopped out in that. If it was just one position with 30 contracts bought at 90.30 it resulted in over a $20,000 loss in less than a minute. Ouch! However, if I had to buy 15,000 barrels of oil all at once I would be trading 15 CL's or WTI's instead of QM. Much more liquid...

 

[SideShowBob]

This type of order imbalance occurs from time to time on GLOBEX. Usually it's with less liquid contracts, but QM can be illiquid at times. If I remember correctly it has to do with the algorithm GLOBEX uses, and it will keep running up (or down) the price until it resets after a few seconds.

I remember getting nailed by a spike like this on ER2 at 4:01 PM EST once, but the trade was later busted. However only some trades were busted, some people got nailed if they were outside the bust range.