Ok big newb question here. How much money does it take to move the market one pip? This probably differs for each cross but is there some formula to it?
If a first you do succeed, try not to look astonished.
Ok big newb question here. How much money does it take to move the market one pip? This probably differs for each cross but is there some formula to it?
Ignored
Actually, this question was already asked a few weeks ago. If you search the threads, there were excellent answers to this question that were very enlightening and impressive Oiler.
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Joined Feb 2006
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Status: Trading other Traders
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How much money does it take to move the market
It may not take any money to move the market.
The market is only the level people are willing to buy/sell at - it doesnt have to be trading at those levels.
Eg: (very simplistic example)
Me/You are trading/making a market in USD/JPY on EBS.
You input a bid: 121.60
I input an offer: 121.62......The "market" is 121.60/62
You cancel your bid and re-input it at 121.57.
I cancel my offer and re-input it at 121.59.....The market is now 121.57/59
etc etc
The market is moving lower without any money/trading moving it - its only our perception of what you/me see as "value" and are willing to buy/sell at that is moving it.
