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Liquidity on Futures Contracts


#1

Hello, I wanted to ask a question about Mini Contracts.

For example, if I am going Long with a Sell Stop Market order, and a Sell Target Limit order, who is going to fill my order on the Target of my Limit order if there is no liquidity but the price is going up.

Let’s say Gold (GC) goes from 1350 to 1351, Mini-gold price will follow gold price. If I have Target Sell Limit at 1350.5, who is going to fill my Limit Order if the price reaches 1351 on Gold (GC) contracts, but at the same time there is no liquidity on Mini-gold (QO) contract ?

The market maker, the broker, or nobody until a market participant Buy the Market at my Sell Limit price ?

Thanks
Regards


#2

Thank you for the question.

Futures brokers like Optimus Futures do not provide fills for customer per se. We provide the technology and match you with the right FCM. The Fills are a function of the exchanges.

Specifically to answer your question: Although the mini gold follows the big contract of the gold, you can not always use it as a reference for your fills. in your example, the mini gold has to surpass the 1350.50 price for you to be guaranteed a sell fill. The two contracts differ in liquidity and therefore you may see lags in pricing.

We hope this helps you in your trading.

Optimus Futures
www.optimusfutures.com