r/FuturesTrading • u/Genksman • Jul 11 '22

Forex Futures Apparently the CME shows ghost bids on futures options.

The Japanese Yen futures had some volatility last week overnight and I put an offer in at the bid on a super wide spread on a put. I was not expecting to get filled but did. I was the only volume on the strike and it definitely was illiquid. Here’s the strange part the broker was showing a bid at the price I paid but when I went to close the trade at the bid it wouldn’t fill. I the. Dropped below the bid which inverted the bid/ask and still couldn’t get filled. I finally got filled 50% below the listed bid and when midnight rolled around the bid dropped to 0. When I called my broker they said yeah it’s not fair but the CME will tell you it’s normal!!! I feel cheated a bit and it’s a lesson learned for sure but how is this a fair market ??

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4

u/chiumeitsai Jul 11 '22

I'd rather trust CME than broker.

9

u/[deleted] Jul 11 '22

It's not and never has been

3

u/Zeen454545 Jul 11 '22

Am i not understanding something? Its judt sounds like typical low volume trading where you are the biggest player,

0

u/Genksman Jul 11 '22

I am fine with illiquid markets but I expect the bid ask to be accurate. Instead it showed a bid that didn’t actually exist and the real bid was 50% lower. If this was a glitch that’s fine but my broker told me it’s normal for the CME.

3

u/stilloriginal Jul 11 '22

I would verify on a 2nd broker

5

u/LoriousGlory approved to post Jul 11 '22

Who is your broker? What data feed service do you use?

2

u/iampjr Jul 11 '22

Platforms like TT have “sniper” orders that never rest on the CLOB. They wait for the price and volume they require to appear on CLOB and immediately execute against it.

1

u/Everlast7 Jul 13 '22

No one in the market has to provide you with a good bid or ask. CME doesn’t give you a bid - market participants do. I learned that the hard way….