How can a contract move with volumes of 0?

[trader221]

How can a contract move with volumes of 0?

Okay, I had learned that the volume of buyers vs sellers make the movement of an asset.
However, on a future contract like BIO (E-MINI NASDAQ BIOTECHNOLOGY) varies enormously while the volumes are at 0.

What brings me to the conclusion that a derivative like the future follows its underlying regardless of the volume quoted long or short?
Am I wrong ?

 

[H2O]

I expect you are refering to daily settlement prices.

For more info on how these are set (also in the event of no trading): https://www.cmegroup.com/confluence/display/EPICSANDBOX/E-mini+Nasdaq+Biotechnology+Futures

 

[Laissez Faire]

A quoted price does not need volume. I.e., you can have a price without volume. But you can't have volume without a price.

 

[maxinger]

A quoted price does not need volume. I.e., you can have a price without volume. But you can't have volume without a price.

ie price will be displayed with and without volume.


how about no quoted price & no volume?

 

[CALLumbus]

How can a contract move with volumes of 0?

Okay, I had learned that the volume of buyers vs sellers make the movement of an asset.
However, on a future contract like BIO (E-MINI NASDAQ BIOTECHNOLOGY) varies enormously while the volumes are at 0.

What brings me to the conclusion that a derivative like the future follows its underlying regardless of the volume quoted long or short?
Am I wrong ?

Last TRADED price cannot change without volume. A trade has to be executed for a new print.

But "quoted price", the bid and ask, can move just by placing and especially pulling orders. Thats how you get those huge gaps, especially around (economic) news announcements.

 

[bone]

It's a great idea to study a futures contract exchange specifications and settlement procedures details.

I quote:

"If a two-sided market is not available on Globex during the closing period, then the cash index will be used in the following Carry calculation to derive a settlement price."

How can a contract move with volumes of 0?

Okay, I had learned that the volume of buyers vs sellers make the movement of an asset.
However, on a future contract like BIO (E-MINI NASDAQ BIOTECHNOLOGY) varies enormously while the volumes are at 0.

What brings me to the conclusion that a derivative like the future follows its underlying regardless of the volume quoted long or short?
Am I wrong ?

 

[murray t turtle]

A quoted price does not need volume. I.e., you can have a price without volume. But you can't have volume without a price.

%%
Exactly.
Its like a real estate contract;
any, can ask any asking price /LOL or any listing price , no volume necessary.
Certified/ bank approved appraisers use [3 or more]comps+ are based on proven bid prices/closed prices.
In derivatives or RE , the lower the volume , the less reliable\less accurate the price is.
I'VE see WSJ \CA| RE one property listed @ 129 million/+ , 52 weeks later ''reduced,LOL'' to $100 million+/....................................................................................[No volume, just asking price]

 

[bone]

All of these cash settled futures index contracts are going to be based on an analog market which provides a fair settlement procedure (in this case, an equity market NASDAQ licensed Index).

 

[murray t turtle]

How can a contract move with volumes of 0?

Okay, I had learned that the volume of buyers vs sellers make the movement of an asset.
However, on a future contract like BIO (E-MINI NASDAQ BIOTECHNOLOGY) varies enormously while the volumes are at 0.

What brings me to the conclusion that a derivative like the future follows its underlying regardless of the volume quoted long or short?
am I wrong ?

%%
Partly right t221+ lets assume you looked @ 2 different data providers + got it right.OK.
Its like the commercial /retail gasoline market.
Thought it would be like/ T Boone Pickens climbing up the price pole + raising the bids [hurricane hydrocarbon patterns], as he did, as kid.
BUT gasoline price stayed the same + sales+ ask price price came down in some cases.
WMT [MUR]gives a gasoline cash discount[+gift card discount] so MUR cashprice= always cheaper than credit price; another local dealer does the same.....................................................Some auto dealers/ loggers have a 52 week+/ fuel contract, so it can vary even more.