I have been trading these for a year or so now - I love the leverage and the transparency being traded on the main seats board
Big pluses for me unlike CFD.s you cant lose more than 100% of your outlay although that rarely would happen away from a black swan event given the margin between the stop loss and strike prices.
As far as liquidity goes you have to monitor the depth of the heads say you wanted to buy a bhp mini and there was only 5000 heads at the top of sell screen you would only get 5000 until more stock goes on at the price.
I recently bought 20000 BRUKOD and they got filled in 4 x 5k lots - remember when you hit the buy trigger the market maker buys the equivalent number of heads a split second prior to your mini order being filled.
If the stop loss is hit the market maker posts a market after 2pm the following day for you to close out the position - there is no guarantee you will get the full differnce between the stop and strike price - it depends on the vwap for the day the stop was hit as the market maker sells the heads to unwind their position.
