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Liquidity in new futures products
Evaluating some of the newer, more niche futures products on various exchanges. Liquidity is always a primary concern. What's your minimum acceptable average daily volume for considering a new contract for consistent trading?
2 comments · 16 points
That's a tough one. For me, anything less than 500-1000 contracts ADX is a hard pass for consistent trading. You just can't get good fills otherwise, especially on bigger orders.
It really depends on your order size and strategy. If you're just dipping your toe in with 1-5 contracts, even 100-200 ADX might be workable, but you'll definitely see wider spreads. Are we talking about micro-futures or full-size contracts here?