The most £/pip

[Mr Fox]

Good Morning all,

With this multi-trillion dollars per day arena we do battle in, I have always wondered, what is the largest amount per pip(granted the industry works in lots/pip, but I've asked from a layman's point of view) that you know of someone to go in at.

What do you think the difference is between someone's £'s/pip who is a home trader, compared to someone at a prop shop, or IB.

P.S. No I'm not thinking of setting fire to the rain on my next trading session, but ask out of mere curiosity, thus have decided to put the question out there for more learned forum members.

Best
John.

 

[cmmichaels]

I don't do anywhere near this but you can definitely put through multiples of 100 lots ($1000) per pip and you can put a lot of them through I've seen up to maybe 700 lot position.

 

[highbury fx]

Good Morning all,

With this multi-trillion dollars per day arena we do battle in, I have always wondered, what is the largest amount per pip(granted the industry works in lots/pip, but I've asked from a layman's point of view) that you know of someone to go in at.

What do you think the difference is between someone's £'s/pip who is a home trader, compared to someone at a prop shop, or IB.

P.S. No I'm not thinking of setting fire to the rain on my next trading session, but ask out of mere curiosity, thus have decided to put the question out there for more learned forum members.

Best
John.

tens of thousands of pounds per pip if you have enough margin on your account.

for example, a client with £5m on his account using leverage of 50:1 would be able to send an order to his broker to sell GBP/USD in £250m at 1.5107 (in s/b terms this would be $25,000 per point). The broker would pick the order ticket up, hold it and either ask one of his top banks to price him in the full amount or begin furiously selling in to the market anything above 1.5107. If the broker got the full amount away through his bank he would accept the deal ticket and the trade would be done or he would fill the order for as much as he has been able to sell in the market.

more likely the client and the broker would have a voice relationship and the conversation would go something like this:

client: whats a level of cable
broker: 08/10 level
client: i want to sell £250m above 05
broker: mom
at this point the broker will talk to his best bank who he knows has either an appetite for quoting in big size or likes quoting for this particular client.
bank: 07/12 in 250
broker to bank: I give you 250 at 07
bank: thanks, 250m £/$ I buy at 1.5107
broker to client: you sell cable 250 at 1.5106

the bank has bought the 250m at 1.5107
the client has sold the 250m at 1.5106
the broker has made $25,000 commission

happens less frequently than it used to in the good old days, but happens often enough still.