Max Tradeable Lots

dwaddell

Member
76 0
Hi,

Would like some info from you guys and gals regarding the maximum 'practical' number of tradable lots through a FX broker...i.e. whats the maximum number of lots one could enter a trade with to ensure that liquidity isnt an issue...?

Thanks

Dave
 

dwaddell

Member
76 0
No takers?

Surely someone knows something about this...

For instance, if I had a bucketful of trading capital, could I trade 500 lots, 1000 lots, 2000 lots, 5000 lots? Whats the limit?

Dave
 

jacinto

Senior member
2,374 101
dwaddell said:
No takers?

Surely someone knows something about this...

For instance, if I had a bucketful of trading capital, could I trade 500 lots, 1000 lots, 2000 lots, 5000 lots? Whats the limit?

Dave

hi dave,

I would love to be able to answer, but i cant. sorry

j
 

Jack o'Clubs

Experienced member
1,554 342
If you trade the CME currency futures (okay, so it doesn't answer your question directly, but should help to a degree), there are usually 50+ contracts within a one-pip spread on either side - a few hundred is not that unusual.
 

dc2000

Veteren member
4,766 129
5mill with sterling as base 10 mill with Euro
 

Directional

Experienced member
1,992 251
if you're talking about dealing in the spot through an FX bucketshop then your available liquidity pool is limited to whatever size the firm wants to let you trade before they start giving you slippage. This might be as little as $5m lots or less depending on the firm.

If you want to do serious size you should definately consider the currency futures as JOC points out - the euroFX market will typicall have 200 lots a side on the immediate bid/ask on a 1 pip spread - thats $25M equivalent cash liquidity each way (1 futures contract is specced at $125k lot size).

If you think you'd be swinging bigger size than this around then you would perhaps want to look at the wholesale ECN's such as Currenex, Lava or Hotspot if you really must deal in cash spots.
 

dwaddell

Member
76 0
Hi,

Many thanks all, yes the transition from a bucketshop straight to a wholesale platform is probably the preferred route. Any comments at what level of trading capital this transition should take place. $100,000? $250,000? $500,000? $1m?

Thanks

Dave
 

Directional

Experienced member
1,992 251
i dont know for sure since I've never traded spots, but I seem to recall reading somewhere that some firms will let you open a currenex acc with $100k+ of capitalization
 

ampro

Well-known member
355 65
Arbitrageur said:
If you think you'd be swinging bigger size than this around then you would perhaps want to look at the wholesale ECN's such as Currenex, Lava or Hotspot if you really must deal in cash spots.

Best option if that's the case, is to contact one of the brokers who feed into one of those wholesale lines.

Depending on your capital & volume turnover, you'll obtain some degree of tiered access + negotiate costs etc.
 
 
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