Liquidity

There is no assurance that, a liquid market will exist for offsetting commodity contracts previously bought or sold at all times. The case may be if a commodities price has increased or decreased by the maximum allowable daily limit and there is no one willing to buy the commodity contract you wish to sell or conversely sell a contract you want to buy. Even on a daily basis, some commodity contracts and delivery months tend to be more actively traded and more liquid than others. Two useful indicators of liquidity are the volume of trading and the open interest. Open interest is the number of open futures positions remaining to be liquidated by an offsetting. These figures are usually reported in newspapers that carry futures quotations. The information is also available from your commodity broker and from the exchange where the ccommodity is traded.

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Information is believed to be reliable and is provided 'as is' without warranty.