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0_public:trading:liquidity [2024/10/23 21:03] – removed - external edit (Unknown date) 127.0.0.10_public:trading:liquidity [2024/10/23 21:03] (current) – ↷ Page moved from trading:liquidity to 0_public:trading:liquidity pointnm
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 +{{tag>indicators basics}}
 +
 +====== Liquidity ======
 +
 +===== Summer Season =====
 +
 +  * The market's current low liquidity during the summer months has further amplified this downturn.((https://archive.ph/j4m47#selection-3657.240-3657.336))
 +
 +===== Low Liquidity =====
 +
 +“It is the lack of physical activity — confined only to desperate covering of nearby physical contracts — that has caused the drying up of their normal futures activity, reducing the liquidity,” said Pam Thornton, a veteran commodity trader at Nightingale Investment Management, who’s best known for her role at former cocoa hedge fund Armajaro Asset Management. “So <wrap hi>if you have to buy futures, you can easily move the market very quickly</wrap>.”((https://archive.ph/L7TY3#selection-2253.0-2253.440))
 +
 +Once again, I don’t recommend trading in markets that aren’t capable of providing the liquidity necessary for seamless entry and exit. [(:ref:a_traders_first_book_on_commodities)]
 +
 +Liquidity is also returning to the futures market, with open interest in global benchmark Brent near the highest since last February. 
 +
 +===== Aluminum =====
 +
 +IXM, owned by China’s CMOC Group Ltd., has built up an unusually large position in the LME’s aluminum contract for delivery tomorrow, which as the third Wednesday of the month is a key focal point for liquidity, according to people familiar with the matter who asked not to be identified discussing private information.
 +
 +===== Jargon =====
 +
 +  * //"More liquidity also entered the sector, with players increasingly setting up metals trading desks for commodities related to the energy transition."//((https://archive.ph/IqERe#selection-1109.329-1109.476))
 +