liquidity in Forex

Hello,

How much is too much to trade in the various Forex markets? In GBP/USD, in USD/JPY? How much is too much to move the market? From reading, it seems that Forex is the most liquid of all markets, but how much is too much to not get orders filled near the price of a market order? $1 million? $10 million? Any answers are appreciated.

Thanks.

Is forex TOO LIQUID? Is this why it moves so much slower than compared to futures??

I'm not saying it's too liquid. I know that if a stock's average dollar volume traded for a day is $100 million and someone tries to trade $10 million, it's going to move the market because the trader would be trading 10% of the daily dollar volume. Are very large trades of that size able to fill in the very liquid Forex markets or is $10 million too high. I know I seem very naïve to ask about such high dollar amounts without having much knowledge about Forex, but from studying charts it looks like I can see a trend that has been very profitable on paper over an extended period of time. To get a friend of mine interested in actually trading this trend, I am trying to see how high a dollar amount we can go.

Why does it concern you on a little slippage if you are going for extended period of time ?

Most brokers should be able to do the size you want. Just call them to set something up.

No I mean within the same day. When I said "over an extended period of time" I meant going back several years on the charts. But the trades would be either within a single day or 2 to 3 days tops. Thank you for your answer.

Just do a fill-or-kill order then you are guaranteed the price. I can't imagine anyone or any market who don't want to fill you.

Call up a broker and ask. If they can't handle it they will know a buddy big bank who can.

Although some banks will tell people to get lost if less than 100 mil is involved.

Thanks Enlightened Joe

LittleAl said:

Thanks Enlightened Joe

Click to expand...

You are welcome. Good luck.