Liquidity on Options on Futures

[XxQuote399]

Hello,

Whats the liquidity for the options on futures markets ? (Agriculturals,FX)

Thanks

 

[Martinghoul]

In one word, crap...

 

[XxQuote399]

but is really very illiquid and bad quotes or can be used to position trading ?

 

[QuestOptions]

In one word, crap...

Forgive me, but not all of them are crap. Now, you can't trade every market, that's for sure.

Some good markets in which you have good liquidity (and tight bid/ask spreads) are the 10 yr notes, 30 yr bonds, e-mini S&P 500, crude oil, gold, euro fx and corn.

liquidity will vary, depending on the contract month as well. You have to be very careful about that...like Martinghoul mentioned, a majority of them are still crap.

But I think as the technology improves and more traders get used to futures options...the liquidity should improve.

You can definitely trade some of the markets without any problems.

 

[RPEX]

All ags are crap, you will most likely pay the full spread on any trade. I think the worst are the NYBOT softs, where their electronic system doesn't allow for strategies. CBOT corn and wheat are slightly better but the rest are crap. When the pits capitulate it should be a different story.

 

[Martinghoul]

...You can definitely trade some of the markets without any problems.

I was only referring to the options on Agri & FX, which the OP mentioned.