How much is needed to move the market? | Forex Factory

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How much is needed to move the market?

  • #1
  • First Post: Oct 1, 2013 10:47am Oct 1, 2013 10:47am
To move EUR/USD how many lots do you need to move the market by lets say 5 pips?

if traded during nighttime when liquidity is low it obviously takes less money to move the market but still, i have NO clue how much it would take to move it by 5 pips. 10 Lot, 100, 1000, 10000... ?
Of course its always different, but can anybody tell me in which dimension i have to think?
thanks
  • #2
  • Oct 5, 2013 8:12am Oct 5, 2013 8:12am
nobody who can reply?
  • #3
  • Oct 5, 2013 8:54am Oct 5, 2013 8:54am
It isn't that simple. It is not a question of how much money you need to put down - it is a question of how far price can move before a matching volume of orders in the other direction is triggered. Say price is at 1.2000, and you buy 5 million lots. If there is 5 million worth of short entry/long exit orders at 1.2001, you will move price 1 pip. If there is 1 million short orders at 1.2001, 1 mil at 1.2002, 1 mil at 1.2003, 1 mil at 1.2004 and 1 mil at 1.2005, you will move price 5 pips - assuming you are the only person buying at that time.
si hoc legere scis nimium eruditionis habes
  • #4
  • Oct 5, 2013 6:14pm Oct 5, 2013 6:14pm
Thanks for your answer.
Yes i understand how the price is made. But i would like to know what the average price movements are in common. Since Eur/Usd is very liquid to most times of day i guess there is always a steady stream buy/sell orders.

So lets say its in the middle of european trading session, no bank holidays, there is no news coming up and during last hours price went in a range of top/buttom 20 pips.
to move the price in this situation 3 pips up, is it more likely i need to buy a) 10 lot b) 100 lot c) 1000 lot
  • #5
  • Oct 11, 2013 7:09am Oct 11, 2013 7:09am
What possible use is the answer going to be to you other than to satisfy your curiosity?
I have no clue what I'm talking about.
  • #6
  • Oct 14, 2013 6:27am Oct 14, 2013 6:27am
Quoting pwnpwn
Thanks for your answer. Yes i understand how the price is made. But i would like to know what the average price movements are in common. Since Eur/Usd is very liquid to most times of day i guess there is always a steady stream buy/sell orders. So lets say its in the middle of european trading session, no bank holidays, there is no news coming up and during last hours price went in a range of top/buttom 20 pips. to move the price in this situation 3 pips up, is it more likely i need to buy a) 10 lot b) 100 lot c) 1000 lot
Well always think about the Capital you have. Then identify the maximum allowable risk %. Then you can decide your lot size
  • #7
  • Oct 23, 2013 5:06am Oct 23, 2013 5:06am
There's just no other answer your question since you would not be the only trader placing orders..
And the only answer has already been provided..
  • #8
  • Jun 25, 2014 2:34am Jun 25, 2014 2:34am
i have heard someone at my country traded at credit suisse he said that you can move the market about 10-20 points with your 1000 lots mean 100m contract
  • #9
  • Jun 25, 2014 10:58pm Jun 25, 2014 10:58pm
Quoting cecakrowo
i have heard someone at my country traded at credit suisse he said that you can move the market about 10-20 points with your 1000 lots mean 100m contract
I seriously doubt that. 100m isn't a whole lot in the Euro.
  • #10
  • Jun 27, 2014 2:02pm Jun 27, 2014 2:02pm
Just another old thread doing the rounds..wish I had a million lots when this thread was created, could have earned a hefty interest
  • #11
  • Jun 27, 2014 2:32pm Jun 27, 2014 2:32pm
Well at 5 trillion, I would say it would easy for the pair to be liquid..... and never sleeping either
  • #12
  • Jun 28, 2014 1:06am Jun 28, 2014 1:06am
How much is needed to move the market?

Not much at all, retail forex liquidity is not bigger than the soybean market...
That 5 trillion available in retail is absolute BS.
  • #13
  • Jun 28, 2014 3:16am Jun 28, 2014 3:16am
Quoting Mingary
How much is needed to move the market? Not much at all, retail forex liquidity is not bigger than the soybean market... That 5 trillion available in retail is absolute BS.
Any sources to back that up, or do we just have to take your word for it? I've got twenty bux in my wallet and I feel like moving the market. Will that do?
Congratulations ScalaFX for coming out of the closet!
  • #14
  • Jun 28, 2014 6:16am Jun 28, 2014 6:16am
Why does this question constantly come up?

Does the answer contribute to one's trading ability in any way?

Does debating semantics ever get tiring?
"Serenity, you sound like a frustrated Canadian living your life in the US"
  • #15
  • Jun 28, 2014 6:23am Jun 28, 2014 6:23am
Quoting SerenityFX
Why does this question constantly come up? Does the answer contribute to one's trading ability in any way? Does debating semantics ever get tiring?
It comes-up to annoy you, and it's working great! Long live this thread!!!

Now keep whining. It's endearing. You've been doing plenty lately and you are getting really good at it.
Congratulations ScalaFX for coming out of the closet!
  • #16
  • Jun 28, 2014 6:56am Jun 28, 2014 6:56am
Quoting nubcake
{quote} It comes-up to annoy you, and it's working great! Long live this thread!!!
I feel honored that people spend so much time thinking about me. And that you have spent the time going through my post history.
"Serenity, you sound like a frustrated Canadian living your life in the US"
  • #17
  • Jun 28, 2014 10:15am Jun 28, 2014 10:15am
Quoting numbnuts
It isn't that simple. It is not a question of how much money you need to put down - it is a question of how far price can move before a matching volume of orders in the other direction is triggered. Say price is at 1.2000, and you buy 5 million lots. If there is 5 million worth of short entry/long exit orders at 1.2001, you will move price 1 pip. If there is 1 million short orders at 1.2001, 1 mil at 1.2002, 1 mil at 1.2003, 1 mil at 1.2004 and 1 mil at 1.2005, you will move price 5 pips - assuming you are the only person buying at that time.
Here you go,the best and simplest answer.
Even if you sell 1 billion but 1 pip below there is someone who will buy 1 billion,you will move price 1 pip only.
So is not about the amount you trade.It's about supply and demand and price moves when supply and demand is out of balance (ie,more sellers aka supply than buyers aka demand)
  • #18
  • Jun 28, 2014 10:31am Jun 28, 2014 10:31am
Quoting Mingary
How much is needed to move the market? Not much at all, retail forex liquidity is not bigger than the soybean market... That 5 trillion available in retail is absolute BS.
Mingary, how do you know this is BS?

This is a true question and not designed to provoke an argument.
If you are good at something, never do it for free--Joker
  • #19
  • Edited 4:00pm Jun 28, 2014 3:40pm | Edited 4:00pm
About 18 months ago I was privileged to visit the trading room at the Westpac Bank, Auckland (I live in New Zealand). It was around 3pm (NZ time), and one of the dealers was placing a $20 million NZDUSD trade on behalf of a client. He split the amount into four separate $5 million orders, so that he didn’t move price against himself too much.

Again, that was $5 million, not $5 trillion.

Hence I think it’s a fair assumption that much depends on the pair being traded, and the time of day.


And anyway, why wait several hours to obtain amateur opinion on Forex Factory, when you can get comprehensive factual data like here, here and here, along with another 1,859,997 responses in 0.42 seconds, by simply using Google?
  • #20
  • Jun 28, 2014 4:21pm Jun 28, 2014 4:21pm
Quoting Boy Wonder
What possible use is the answer going to be to you other than to satisfy your curiosity?
thats true..

Well, the biggest ticket I made (institutional) was over 70 mio EJ during laandan. Nothing...

Did several tickets on eurchf during laandan. over 200 mio, it hadnt moved a bit.

Hard to say what should be amount. Hard to say even if the amount is great, that you "moved" the market..
Market makers easily could handle bigger amount that we could imagine.
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