Bull and Bear – The Importance of Two-Sided Trade

When investing in Managed Futures, it must be understood that there has to be a buyer and a seller for the every contract traded. Without the two-sided trade the market becomes overbearingly bullish or bearish. When the markets are two-sided it provides for greater supply and demand, allowing for prices to rise and fall. Greater liquidity in the markets can also allow for greater profit potential. So, whether the market is bullish or bearish, it must be able to move to the opposite direction at some point in order for the market to maintain its liquidity.