Near-Zero Liquidity in S&P Futures Means ‘Slippage’ Risk Is High
- Lack of liquidity can contribute to wild price swings
- Equity futures markets being halted almost every day
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Liquidity is vanishing for U.S. equity futures.
Traders of S&P 500 e-minis are now only offering to buy or sell a few contracts at a time -- often numbering in the single digits -- compared with an average of more than 1,000 just a month ago, data from Deutsche Bank Asset Allocation show.