I haven't asked a dumb question in a while, so here goes:
How big can one single trade be before it affects the market for a particular pair?
Example - If the ask on the EURUSD is 1.3632, as it is right now, how many standard lots could one order be before it changed the price?
I'm sure the answer will depend on the time of day and the currency pair in question, etc, but in general, what's the right way to figure this out?
I'm used to thinking about this on the stock market when trading penny stocks or deep ITM or OTM options but even though forex is so huge in comparison, there has to be some breaking point.
If Joe Smoe Trader has a $10m account and decides to buy 1000 standard lots of EURUSD at market price, would anyone notice or even care? Or is this big enough to affect the market price?
Of course, hopefully someday I will be Joe Smoe Trader and need to know this...
How big can one single trade be before it affects the market for a particular pair?
Example - If the ask on the EURUSD is 1.3632, as it is right now, how many standard lots could one order be before it changed the price?
I'm sure the answer will depend on the time of day and the currency pair in question, etc, but in general, what's the right way to figure this out?
I'm used to thinking about this on the stock market when trading penny stocks or deep ITM or OTM options but even though forex is so huge in comparison, there has to be some breaking point.
If Joe Smoe Trader has a $10m account and decides to buy 1000 standard lots of EURUSD at market price, would anyone notice or even care? Or is this big enough to affect the market price?
Of course, hopefully someday I will be Joe Smoe Trader and need to know this...