Market conditions, such as illiquidity, and/or the operation of the rules of certain markets (specifically, the suspension of trading in any contract or contract month because of price limits) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate your positions in the event that prices move adversely.
Further, during these instances, normal pricing relationships between the underlying interest and the futures, and the futures and the corresponding futures option may not exist. The latter can occur when, for example, the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may, in turn, make it difficult to judge fair value of your futures position and, consequently, equity in your account.
i On The Market - Daily Newsletter
Every trading day, be ready to attack the market instead of reacting to the market.
You will know where the key technical resistance and support levels are and what the market is likely to do next. iStock will arm you with a target list of stocks to buy and sell - right now - based on our exclusive, proprietary trading models.
Two Week FREE Trial