U.S. stock market liquidity 'abysmal,' adding to volatility risk
- Thread starter ajacobson
- Start date
The article also talks about the thin depth in the e-mini S&P futures.
The order book always thins out during volatility.
This is simple math.
If volatility increases but volume stays about the same, then the order back has to get thinner, no way around it.
The order book always thins out during volatility.
This is simple math.
If volatility increases but volume stays about the same, then the order back has to get thinner, no way around it.
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Flat out stealing more than six trillion dollars from private investors doesn't do much to encourage market participation.
The surprising fact in this report, if true, is that nearly 50% of equity market volume is in ETFs, and not stocks.
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LOL\that'$ a better example than his note about FB, as if NQ stocks have ever been real liquid.
SPY, liquidity leader,, looks fine\even though if one gets on wrong side of overnite gaps, as a practical matter your liquidity + profit can get hurt .
FB as WSJ noted on radio \got chewed by competition\ bad customer service\\censorship, may get more liquidity risk on downside............................................................