how do i find the primary contract with highest volume on IB?

O

OTCkrak

I'm new to trading Ag futures.. between different venues (nybot/cbot/nymex/globex/cme) and expirations.. How can I know which contract is the most liquid?

For example December Corn ZC is trading with higher volume than September expiration.. Is there a better way than manually loading both up and comparing volumes?
 
OTCkrak said:
I'm new to trading Ag futures.. between different venues (nybot/cbot/nymex/globex/cme) and expirations.. How can I know which contract is the most liquid?

For example December Corn ZC is trading with higher volume than September expiration.. Is there a better way than manually loading both up and comparing volumes?
More...

A few thoughts:
1. You can ignore the ICE grain contracts. They are CME lookalikes with very little volume.

2. You can ignore the CME softs. They are ICE lookalikes with very little volume.

3. The CME and ICE both have active energy contracts so it's not as clear cut. That's just FYI in case you look at energy trading in the future.

4. Using Interactive Brokers for agricultural contracts, choose the "ECBOT" contracts that start with a Z.
  • ZC corn
  • ZW wheat (soft red winter). I believe the recently acquired Kansas City Board of Trade wheat contract (hard red winter) is designated "KE" for the e-version.
  • ZS soybeans
  • ZL soyoil
  • ZM soymeal

5. The ECBOT contracts are the ones that trade from 7P CT to 1:15 CT the following day, they have 90-95% of the volume and execution costs are cheaper than traditional pit trades. If you were trading very large and complex option orders, you *might* consider pit trades (I think they are maintaining about a 50% market share), but that market will probably go all-electronic someday, too.

6. As for volume and open interest, you'll usually find the most activity in the first or second month. On my summary quote page I always display at least the first three months and the detailed page has more. Even if you're not a spread trader, it's helpful to keep an eye on what's going on in different months - volume, open interest and price relationship.
 
^helpful.. thank you

yes, I do trade energy, metals, fx, and rates. I greatly improved my trading skill and profitability by not limiting myself to a single market. If i don't see a trade in 6E or ES maybe live cattle is moving (whatever).

I started off trading fin index products now comfortable with all markets in terms of price action and risk management. Just wish there was a way to be able to view my entire "universe" which based on my limited understanding of IB trader workstation may as well be hidden unless you are directly involved in the industry and know the symbols. Even from the product listing on the website, 80% have little volume, and I feel that if I search for a contract, im not even sure im looking at the primary one..
 
A quick way to get an activity oveview - without punching in all the symbols on IB - is to look at the CME page for that contract.

Here's an example for the porkers.

http://www.cmegroup.com/trading/agricultural/livestock/lean-hogs.html

There's a "volume" tab above the table that has more details on volume and open interest. The agricultural contracts will definitely be different than energy or financials with respect to certain months having more activity.

Sticking with hogs, the May contract is very inactive. Maybe it was established long ago when the industry cycle needed Apr, May, Jun, July and Aug, but that doesn't appear to be the case any more.
 
Brighton said:
A few thoughts:
1. You can ignore the ICE grain contracts. They are CME lookalikes with very little volume.

2. You can ignore the CME softs. They are ICE lookalikes with very little volume.

3. The CME and ICE both have active energy contracts so it's not as clear cut. That's just FYI in case you look at energy trading in the future.

4. Using Interactive Brokers for agricultural contracts, choose the "ECBOT" contracts that start with a Z.
  • ZC corn
  • ZW wheat (soft red winter). I believe the recently acquired Kansas City Board of Trade wheat contract (hard red winter) is designated "KE" for the e-version.
  • ZS soybeans
  • ZL soyoil
  • ZM soymeal

5. The ECBOT contracts are the ones that trade from 7P CT to 1:15 CT the following day, they have 90-95% of the volume and execution costs are cheaper than traditional pit trades. If you were trading very large and complex option orders, you *might* consider pit trades (I think they are maintaining about a 50% market share), but that market will probably go all-electronic someday, too.

6. As for volume and open interest, you'll usually find the most activity in the first or second month. On my summary quote page I always display at least the first three months and the detailed page has more. Even if you're not a spread trader, it's helpful to keep an eye on what's going on in different months - volume, open interest and price relationship.
More...


Lucid explanation. Nicely done.
+1
 
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