I trade stock futures, but i find there is a lot of spread in stock futures except a very few, do commodity markets have better liquidity in general?
I guess in India MCX, Crude Oil got a good liquidity…Copper, Zinc, NG are few others that got to an extent liquidity but it depends with your startegy
If you compare Stock futures turnover/day with commodity features then you will notice that the stock features turnover is much more than commodity features.Because number stock available for trading is more than commodity products.
The highest liquidity at MCX is Gold , Silver and CrudeOi compared to metals.The liquidity again depends on the individual trading day.
I thought in India Commodity market liquidity often correlates very well with commodity market trading profits. There are three important benefits to traders in high commodity market liquidity.
1. The first is that it is easier to enter and exit trades
2. The second is that bid and ask prices are commonly closer.
3. The third is that with high trading capacity and liquidity the statistics of online trading software additionally the predictive ability of time honored tools such as pattern formations tend to be more precise.
A useful measure of trading volume and a useful predictor of trading volume is open interest. In India we easily find out the top ten mcx tips provider,as well as these providers advise to investor about learn use commodity market liquidity to the maximum advantage in profiting from commodity trading, traders are wise to take Commodity and Futures calls and to develop their skills, analysis of commodity prices.