Today at about 15:46 CST, after the, slow, contrived, yet monster spanking in CLX2, we traded down the low, 93.06, put in a new low, 93.04 and then all the bids disappeared and the market vacuumed down to 92.84 on no volume. I was just wondering what the obligation is of the Market Makers to provide liquidity? The market just moved, with no execution. I was short, so I'm not complaining, just curious.
That is probably really just the speed of CL. I am sure there were probably bids at every level just can move very fast. That is actually not that big of a move for CL. Why it is bad to play with CL unless have quite a bit of experience. Also important to have a very good data feed as some filter and are not reliable. I have never seen the bid disappear on CL unless my feed was bad. I have seen large moves in seconds or minutes but there was always a bid. Futures market is essentially 0 sum game and there is not really a market maker system like in stocks where they are required to provide liquidity. Every man for himself.
"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."
Right or wrong,
However I think you raised a good question here. We're always concerned with the execution but never bother to know what MMs are supposed to do on the markets. Also anyone knows the difference between a Market Maker and a Market Specialist?
