Which instrument is most liquid/volatile/popular?

This is a discussion on Which instrument is most liquid/volatile/popular? within the General Trading Chat forums, part of the Reception category; Hi guys Can you rank the instruments of stocks, futures, and options in terms of: 1. Liquidity (lowest bid ask ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Jan 4, 2009, 8:24pm   #1
Joined Jun 2008
Which instrument is most liquid/volatile/popular?

Hi guys

Can you rank the instruments of stocks, futures, and options in terms of:

1. Liquidity (lowest bid ask spread, easiest to convert into cash)
2. Volatility (highest daily percentage change)
3. Volume (how easy it is to execute a single trade that's worth $100,000,000 of such instrument with fast execution...It should be easy if the instrument has high volume (such as forex))

Thanks!
johanesw is offline   Reply With Quote
Old Jan 5, 2009, 1:49pm   #2
Joined Dec 2004
Here's a very broad brush answer. There's very good liquidity in any of the higher profile futures and stocks, but for most option contracts it's the opposite. Options have the highest price volatility by a long, long way. Futures is where you can do the biggest value trades the easiest.

That said, there are massive difference between futures contracts and in and among the different stocks. That makes your query hard to answer very specifically.

By the way, forex beats all the others in liquidity and volume.
__________________
John Forman
Author - Trading FAQs, The Essentials of Trading
Rhody Trader is offline Training literature vendor (e.g courses / spreadbetting guides / eBooks)   Reply With Quote
Thanks! The following members like this post: Skill Leverage , bizmanny
Old Jan 5, 2009, 3:01pm   #3
 
N Rothschild's Avatar
Joined Oct 2008
id say on certain days futures like gold and crude can be pritty vicious!
__________________
"Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild

Bullsh!t, Bearsh!t all smells the same to me!

"It is not cheap to develop automated systems , mine already cost over $1m. " oildaytrader
N Rothschild is offline   Reply With Quote
Old Jan 5, 2009, 3:16pm   #4
Joined Nov 2008
ill prefer forex because of the volitility and spreads
WallStreetHero is offline   Reply With Quote
Old Jan 5, 2009, 3:33pm   #5
Joined Dec 2004
Quote:
Originally Posted by suhaib View Post
ill prefer forex because of the volitility and spreads
Forex volatility is actually, in general terms, less than other markets. For example, how often do you see 10% moves in one of the majors on a single day? Extremely rarely. Now how often do you see them in stocks? I won't say frequently, but certainly it's much more common than in forex.

Leverage, of course, can make all the difference.
__________________
John Forman
Author - Trading FAQs, The Essentials of Trading
Rhody Trader is offline Training literature vendor (e.g courses / spreadbetting guides / eBooks)   Reply With Quote
Old Jan 5, 2009, 4:41pm   #6
 
Skill Leverage's Avatar
Joined Nov 2008
Quote:
Originally Posted by Rhody Trader View Post
Leverage, of course, can make all the difference.
You're too kind Rhody, I know I'm influential in the markets but even I have limitations
Skill Leverage is offline   Reply With Quote
Old Jan 8, 2009, 9:00am   #7
 
4 Posts
Joined Nov 2008
For that kind of size the most liquid market is spot currency for sure, if your limiting yourself to futures, stocks or options then futures are the most liquid of those asset classes, especially the highly active contracts such as eurodollar, bond, and S&Ps. As others have alluded to though, the actuall dollar value of a position is meaningless without accounting for leverage and underlying asset volatility.
darckeen is offline   Reply With Quote
Old Jan 8, 2009, 9:58am   #8
 
Skill Leverage's Avatar
Joined Nov 2008
I see my joke went down like a sh*t sandwich... best not put that one in the book
Skill Leverage is offline   Reply With Quote
Old Jan 8, 2009, 10:16am   #9
 
rathcoole_exile's Avatar
Joined Jun 2007
what's a shut sandwich, is that the opposite of an open sandwich ?


you see, you don't have the monopoly on rubbish jokes !!
__________________
my Opinion is never "humble "

karl6666: 'Why doesnt anybody like you R_E, is it because you shout?'
rathcoole_exile is offline   Reply With Quote
Old Jan 8, 2009, 10:28am   #10
 
Skill Leverage's Avatar
Joined Nov 2008
Top drawer Sir.
Skill Leverage is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Which Instrument provides most information? Darquan First Steps 3 Jun 15, 2009 7:54pm
most traded or favorite instrument for EU dsalas General Trading Chat 4 Dec 1, 2008 5:43pm
Instrument of choice wasp General Trading Chat 4 Sep 14, 2007 10:59pm
Trading instrument poll allenm First Steps 0 Oct 4, 2004 9:33pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)