4 Reasons Why You Should Use QB’s Liquidity Tracker
QB’s new Liquidity Tracker tool is a free web-based, open-source, tool from Quantitative Brokers to the broader trading community. Launched in January 2022, the tool has already proven an integral tool for our active clients to gain valuable insights into the futures markets. The Liquidity Tracker is designed to help make trading decisions quickly and efficiently. The Tracker is available across 3 of the world’s largest exchanges and is visible for 20+ contracts across Interest Rates and Equities. QB will expand across our other partner exchanges to include additional coverage in Agricultural, Energy, and FX markets in the near future. While we work on that, we wanted to share the top 4 reasons why you should consider using QB’s Liquidity Tracker to make real-time decisions:
Analysis at Your Fingertips – The Liquidity Tracker is a high-performance tool. It processes millions of market data events per second, with instant computations happening in the backend. QB’s Liquidity Tracker analyzes and displays book depth and bid-ask spreads at the current time.
Risk Management – Data always tells the whole story. The Liquidity Tracker uses a comparative approach by analyzing each contract's recent versus historical (10-day) average. Deteriorating market liquidity, also known as thin liquidity, helps you understand the current market environment and manage your intraday risk. Historical data references also provide valuable insights about the state or regimes of the markets, also referred to in several QB white papers.
Market Impact – Price impact caused by a market order is a manifestation of the quality of price discovery. When the price discovery quality is challenging, the price impact is higher than usual. With the aggregated data in the Liquidity Tracker, traders can decide when the best time is to trade to minimize price impact. Read our analysis on Alpha and Market impact here.
Educational Tool for Research – Market microstructure primarily deals with the study of exchanges and factors that influence the quality of price discovery. Quantitative Brokers is a leader in market microstructure research. We have spent the last decade focusing on the structure of exchanges and trading venues, price discovery process, determinants of spreads and quotes, intraday trading behavior, and transaction costs. Our trading algorithms were built by quants and traders to facilitate trading in unpredictable market conditions while saving on trading costs.
We specialize in market microstructure research and can save you when executing in volatile markets. Before you trade, consider using QB’s Liquidity Tracker to make informed decisions. The Tracker is only the beginning of a long line of analytical tools aimed at helping you forecast trading costs with more precision and certainty and staying informed. Stay tuned!
Quantitative Brokers
February 2022
New York, NY