On an exchange, the ask price is coupled with an amount/volume the seller can give you of the currency you are buying. When you fill that amount with your long order, the next best price (always higher) becomes the new ask price, and the bid moves with it. No magic involved, just supply and demand. To see a graphic example, go back to darkstar's well written sticky in the brokers forum.
Ignored
Thanx Plutonite,
that was a great help, I'm beginning to see why price moves, why it doesn't and who is moving it.
yep! but on a 10-lot order, i would probably break it down into 10 1-lot orders. not that a 10-lot order would get a bad fill or move the market (1mil order is considered fairly small), its just good practice to spread out the execution risk.
Ignored
1mil can move the market a few pips. I've done it. If you can stomach losing a few 100s, you should try it sometime.
|
Joined Jun 2007
|
Status: Hug it out Bitch
|464 Posts
Yeah thats not right. If the market moved when you hit the go button it is either a coincidence, or like TraderKGB said... get a new broker! 1 mio is nothing in the FX market. Wouldnt even move the kiwi 1 pip on a monday morning (market open).
