Forex Lot Sizes

This is a discussion on Forex Lot Sizes within the Forex forums, part of the Markets category; I have two questions: a) Does anyone know roughly how many lots (100,000 units) the average retail trader trades in ...

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Old Dec 29, 2008, 8:17pm   #1
 
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Forex Lot Sizes

I have two questions:
a) Does anyone know roughly how many lots (100,000 units) the average retail trader trades in either the EURUSD or GBPUSD? I've heard everything from 5 to 25.
b) If you do become good enough to trade 50 or 100 lots, will the typical broker fill orders of this size from a retail trader?
If anybody does know the answer to these questions, I'd really appreciate hearing your comments.
Thanks,
---Jennifer
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Old Dec 29, 2008, 9:11pm   #2
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a) Does anyone know roughly how many lots (100,000 units) the average retail trader trades in either the EURUSD or GBPUSD? I've heard everything from 5 to 25.
Considering that a large portion of the retail trader set is at a pretty low capitalization, I would expect that average number of full lots per trade much closer to 1 than to being in the double digits. Think about how many mini and micro lot traders there are out there. That's the bulk of the retail market.

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b) If you do become good enough to trade 50 or 100 lots, will the typical broker fill orders of this size from a retail trader?
If you're trading with an ECN then it's all about the depth of the liquidity pool. As for the dealers, some do have restrictions. For example, I believe Oanda has a max of 12 million. Others will have their own caps, or none at all.

Realistically, though, if you're trading 50 to 100 lots you shouldn't be going with a retail broker. You're at the interbank level where you could get better pricing (and carry rates), especially if you're a liquidity provider.
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Old Dec 30, 2008, 9:22am   #3
 
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JenniferS started this thread Thank you John, I really appreciate your information.
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Old Jan 5, 2009, 2:42am   #4
 
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Quote:
Originally Posted by JenniferS View Post
I have two questions:
a) Does anyone know roughly how many lots (100,000 units) the average retail trader trades in either the EURUSD or GBPUSD? I've heard everything from 5 to 25.
b) If you do become good enough to trade 50 or 100 lots, will the typical broker fill orders of this size from a retail trader?
If anybody does know the answer to these questions, I'd really appreciate hearing your comments.
Thanks,
---Jennifer
is differs in company’s
retail vs institutional clients is usually up to the head trader (due to hedging)
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