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Liquidity - Question on trading BIG lots

  • #1
  • First Post: Sep 18, 2007 8:54pm Sep 18, 2007 8:54pm
This is a question for people that trade big lots/are knowledgable in forex liquidity:

If one were trying to consistently trade the same ammount of lots (so that a system of win/losses wouldn't be screwed up by market orders not being fully filled) through a standard online broker, what would be the SAFEST lot size to consistently trade? By this I mean from 100k-900k+, which order size would MOST likely to always be filled no matter what time of the day the order is filled? I know that forex is a very liquid market, but have no experience trading above the 90k level. Thanks in advance.
  • #2
  • Sep 19, 2007 9:56pm Sep 19, 2007 9:56pm
It would depend entirely on what pairs your trading and what you define as a "standard online broker". There are just too many variables involved to give you an answer.
  • #3
  • Sep 19, 2007 10:20pm Sep 19, 2007 10:20pm
Quoting nyxxo
By this I mean from 100k-900k+, which order size would MOST likely to always be filled no matter what time of the day the order is filled?
The size of the bid/ask on the inside is rarely below $5-10 mil on the ECNs I use. 1-9 lots will never have a problem being filled at the best price. I can't speak for dealing desks though..
  • #4
  • Sep 19, 2007 10:38pm Sep 19, 2007 10:38pm
Use IceBerg Advance Order Feature...That Is If Your Broker Has 'eM
  • #5
  • Sep 20, 2007 1:06am Sep 20, 2007 1:06am
trading EUR/USD on FXCM - does that help you answer? thanks
  • #6
  • Sep 20, 2007 3:33am Sep 20, 2007 3:33am
just a dealing desk like FXCM, OANDA, etc... I don't have a clue on currenex or EBS. Hopefully this will help get me a better answer.
  • #7
  • Sep 20, 2007 8:42pm Sep 20, 2007 8:42pm
Quoting nyxxo
just a dealing desk like FXCM, OANDA, etc... I don't have a clue on currenex or EBS. Hopefully this will help get me a better answer.
Supposedly oanda guarantees liquidity to $10m notional per trade. FXCM is probably similar. Though if your trading with that kind of size, retail probably isn't the best place to be doing it.
  • #8
  • Sep 23, 2007 3:17pm Sep 23, 2007 3:17pm
Quoting Darkstar
Supposedly oanda guarantees liquidity to $10m notional per trade. FXCM is probably similar. Though if your trading with that kind of size, retail probably isn't the best place to be doing it.

Why not, Darkstar? What would you consider to be the max trade with a retail broker?
KT
  • #9
  • Sep 29, 2007 5:24pm Sep 29, 2007 5:24pm
if anyone cares i found the answer to my question.... ACM (AC MARKETS) guarantees fills on limit orders upto 5000k.... solid broker as well.
  • #10
  • Sep 29, 2007 6:43pm Sep 29, 2007 6:43pm
Quoting KingdomTrader
Why not, Darkstar? What would you consider to be the max trade with a retail broker?
KT
Most retail brokers are market makers so with that kind of volume you may not be getting the best fills, plus the spread at most retail brokers can be an additional 2-3 pips on majors over the interbank rates.. so you're basically incurring unnecessary costs.. Hope that helps

Ron
  • #11
  • Sep 30, 2007 3:46pm Sep 30, 2007 3:46pm
10 lots will be swallowed up - ive traded in the past as many as 150 lots on cable at one price but it was beginning to concern the brokers at that level. at this point you ask them to get in your orders in batches and they 'work the order' for you.

with more liquid pairs like eurusd you'll have no problems - 100 lots doesnt get an eye blink in euro

hope this helps
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  • #12
  • Oct 4, 2007 6:04am Oct 4, 2007 6:04am
Quoting nyxxo
if anyone cares i found the answer to my question.... ACM (AC MARKETS) guarantees fills on limit orders upto 5000k.... solid broker as well.
Don't believe everything you read or hear.

A "guranteed fill" promise from a market maker / dealing desk broker is worthless IMHO. Trading 100 lots with a dealing desk broker is suicidal in my book. Unless your system is longer-term in nature, it makes no sense whatsoever.
  • #13
  • Oct 4, 2007 6:43am Oct 4, 2007 6:43am
Quoting soultrader
10 lots will be swallowed up - ive traded in the past as many as 150 lots on cable at one price but it was beginning to concern the brokers at that level. at this point you ask them to get in your orders in batches and they 'work the order' for you.

with more liquid pairs like eurusd you'll have no problems - 100 lots doesnt get an eye blink in euro

hope this helps

That is good to know. How about cable? I mean, which one is more liquid, between GBP/USD and EUR/USD?

Thank you in advance.


--TNT--
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  • #14
  • Oct 4, 2007 6:56am Oct 4, 2007 6:56am
Quoting --TNT--
That is good to know. How about cable? I mean, which one is more liquid, between GBP/USD and EUR/USD?

Thank you in advance.


--TNT--
EUR/USD by far.
  • #15
  • Oct 5, 2007 9:49am Oct 5, 2007 9:49am
yes, eurusd by miles and miles - hence why it doesn't move as fast.

as a general rule of thumb this is a general example why ...

if you have 10,000 players in cable today then to make a significant shift up and a run you need say 5200 going long.

by the same token if there are 200,000 in the game then you need say 120,000 going long.

The more people there is in a market the more it takes to swing the price - think of it as a tug of war with a rope

Pairs with low number of participants tend to have wilder swings because it takes less of a consensus to move it.

I know that's not your question, but i threw that one in for free
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  • #16
  • Last Post: Oct 5, 2007 12:55pm Oct 5, 2007 12:55pm
Quoting soultrader
yes, eurusd by miles and miles - hence why it doesn't move as fast.

as a general rule of thumb this is a general example why ...

if you have 10,000 players in cable today then to make a significant shift up and a run you need say 5200 going long.

by the same token if there are 200,000 in the game then you need say 120,000 going long.

The more people there is in a market the more it takes to swing the price - think of it as a tug of war with a rope

Pairs with low number of participants tend to have wilder swings because it takes less of a consensus to move it.

I know that's not your question, but i threw that one in for free

That actually make alot of sence to me. Thank you so much for the explaination.


--TNT--
I Love Forex Factory!
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