DislikedPip,
Most of the time liquidity problems can become a real bummer when multiple (and I mean a truck load) of institutions ride the same strategy, i.e. when a great chunk of market participants started to unwind the carry trades a while ago. That has serious consequenses to the whole market.
If it is just one fund trying to get out of a position, it will cost them pips of course - but it won't effect the end result too heavy since these occurrences are factored in as 'costs'.
I am in the business, yes.
regards,
daytradingIgnored
Unwinding of the carry trade, I was caught up in that about this time last year, not nice (understatement!).
So you're one of these guys running stops are you, tsk tsk, it must be great fun to have the ability to move the market, I'd probably get fired within a week, lol