How much Volume until You Affect Market?

[debrox]

How much do you think you have to trade at one moment (in 1k lots I guess) until you start affecting the prices noticeably?

 

[Rhody Trader]

As a retail trader you'll never do it because you're not operating in the market where prices get set. You have to be swinging multi-billion dollar trades in the interbank market to impact prices to any significant degree - a bit less for the more regional pairs.

 

[debrox]

As a retail trader you'll never do it because you're not operating in the market where prices get set. You have to be swinging multi-billion dollar trades in the interbank market to impact prices to any significant degree - a bit less for the more regional pairs.

Wow. Is the multiple billions the nominal value (after leverage)?

 

[Rhody Trader]

Wow. Is the multiple billions the nominal value (after leverage)?

Yes, and at that size you wouldn't be allowed to use nearly the leverage you can use as a retail trader.

 

[Patricia12]

I also think multi-billion dollar trades need to affect market.

 

[Samira Bhagvat]

Its Depend On Market if everything is going good then no matter to invest more hen 1k.

 

[feelingpippy]

How much do you think you have to trade at one moment (in 1k lots I guess) until you start affecting the prices noticeably?

My understanding is that it trades 3.5 trillion in volume a day, so I don't think a 1k lot will have any impact.

 

[Mornington Crescent]

It will depend on the order books either above you or below you

if you cant find finance enough volume to clear their orders off the books then you wont have any effect at all

and if they see you coming they will pull their orders and come back in behind you thereby restoring or reversing their original positions and leave you stranded