HO, RB, NG liquidity

[TraDaToR]

At the time, it seems that only CL has decent B/A spread intraday.

Do you think NG, HO, RB spreads will narrow with time ?

I guess it would be difficult for MMs to make money while maintaining a 2 ticks B/A spread on NG for example...

 

[scriabinop23]

Quote from TraDaToR:

At the time, it seems that only CL has decent B/A spread intraday.

Do you think NG, HO, RB spreads will narrow with time ?

I guess it would be difficult for MMs to make money while maintaining a 2 ticks B/A spread on NG for example...

There are no MMs.

And as a percentage of contract, those spreads are tiny.

 

[TraDaToR]

Quote from scriabinop23:

There are no MMs.

You can call them unofficial liquidity providers if you want... I say MMs cause it's what they do.

I agree that spreads are quite tiny considering the daily range, but I will wait to see if it narrows further to trade it. Those contracts are great for trend following.

 

[gurucandidate]

I scalp CL, but at some point I was trading NG off CL, by that I mean I would grab NG if it was lagging on the way up or sell if it was lagging while CL was dropping. While the bid/ask can be wider then on CL the swings are also bigger so one can set one's money targets wider.

This of course worked (to some degree ) because I was acting as a market maker but I can see the peril in paying the spread.

GC

 

[scriabinop23]

Quote from gurucandidate:

I scalp CL, but at some point I was trading NG off CL, by that I mean I would grab NG if it was lagging on the way up or sell if it was lagging while CL was dropping. While the bid/ask can be wider then on CL the swings are also bigger so one can set one's money targets wider.

This of course worked (to some degree ) because I was acting as a market maker but I can see the peril in paying the spread.

GC

You weren't making a market; you were speculating NG would trade in the same direction as CL.

 

[Bear Plunger]

Quote from scriabinop23:

You weren't making a market; you were speculating NG would trade in the same direction as CL.

I take it then there are no specific liquidity providers in NG then? Guys that are there specifically for that job?

 

[scriabinop23]

Quote from Bear Plunger:

I take it then there are no specific liquidity providers in NG then? Guys that are there specifically for that job?

every participant, small or large, provides liquidity.

 

[gurucandidate]

Quote from scriabinop23:

You weren't making a market; you were speculating NG would trade in the same direction as CL.

When it is hectic it can be twelve points between bid/ask and I regularly trade inside it at 10. At that point I am providing liquidity.

GC