Volume and open interest for derivatives?

While doing day trading of options and FFutures on 15 min chart,
does any kind of specific value of volume and open interest is required to ensure the liquidity? (or) just comparing tthe past volume and open interest,the prsent values of both should be higher?
ie, Does Traders look for any specific value in volume and open interest for option and future contracts?lets say 1000 in volume and 500 open interest atleast to enter the trade? or just he expects values to be higher?

Please explain to me clearly.
Thank You.

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This entry was posted on Thursday, May 6th, 2010 at 8:07 pm and is filed under day trading futures. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Volume and open interest for derivatives?”

  1. zman492 Says:
    May 6th, 2010 at 8:14 pm

    I will not speak for other traders, just myself.

    I do not really care about volume or open interest. What I check is the size of the bid-ask spread. If the spread is too great it discourages me from trading those options.

 

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