Could 50 Standard Lots move the Market? | Forex Factory

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Could 50 Standard Lots move the Market?

  • #1
  • First Post: Oct 30, 2009 8:07am Oct 30, 2009 8:07am
Hello I had a question that is hard to answer unless you trade large amount of lots.

I was wondering if purchasing 50 Standard Lots of GBP/USD would cause the market to move? Or if there would be trouble filling the order? It is the equivalent of 5 million right? So would that be enough to push the market in the direction that you are buying?

Thanks,

--MAXSS
  • #2
  • Oct 30, 2009 8:42am Oct 30, 2009 8:42am
I'm pretty sure I could do it but I'm not telling you how. Please send the money to account No. 679 9809 sort code 11 23 70.
Gone to a better place
  • #3
  • Oct 30, 2009 9:36am Oct 30, 2009 9:36am
Approximative Daily Turnover in Forex = about 4 trillion dollars
(that is = $4.000.000.000.000)
50 lots = $5.000.000 = 0.000125% of daily turnover.
I would say... no.
Though every little drop counts...
  • #4
  • Oct 30, 2009 9:42am Oct 30, 2009 9:42am
Quoting maxss280
Hello I had a question that is hard to answer unless you trade large amount of lots.

I was wondering if purchasing 50 Standard Lots of GBP/USD would cause the market to move? Or if there would be trouble filling the order? It is the equivalent of 5 million right? So would that be enough to push the market in the direction that you are buying?

Thanks,

--MAXSS
Hi Maxxss,

I think if you traded at the right time in the Kiwi season you would be able too!

are you planing to give it a go?

  • #5
  • Oct 30, 2009 10:52am Oct 30, 2009 10:52am
No, 50 lots isn't enough to make a difference, regardless of when it is traded. If you think about it, it is the equivalent of just 5 people trading 10 lots, and there are hundreds, if not thousands of people doing that. Jacko trades 200 lots at a time with no impact.

As far as pushing in the direction you want it to go...well, it was going there anyway, right? Otherwise there would be no reason to open a trade in that direction...
  • #6
  • Oct 30, 2009 12:11pm Oct 30, 2009 12:11pm
200 lots a pop? I'd like to see that thread please.
  • #7
  • Oct 30, 2009 12:23pm Oct 30, 2009 12:23pm
Quoting DubaiTrader
200 lots a pop? I'd like to see that thread please.
http://www.forexfactory.com/showthread.php?t=27286



Yes, 200 standard lots equals U$2,000 per pip. Gives me the creeps just to think about it.
freedom
  • #8
  • Oct 30, 2009 12:34pm Oct 30, 2009 12:34pm
A lot of $ for sure. Anyone any ideas what broker he uses or ECN? I would ask him myself but it seems he doesn't visit here too often.
  • #9
  • Oct 30, 2009 12:58pm Oct 30, 2009 12:58pm
He uses 3 different brokers if i'm not mistaken. He doesn't tell even his private trading group which these are, he doesn't want to look like he's marketing for some broker i think.

But it doesn't really matter, as long as we're picking top brokers we should be fine. It doesn't make much of a difference.
freedom
  • #10
  • Oct 30, 2009 1:31pm Oct 30, 2009 1:31pm
Jacko is a very good trader, but just remember although he has a simple trading plan, because he manages a fund of something over $15 million, his actions are somewhat different than a normal retail trader. He uses a 100 pip hard stop-loss and it gets hit fairly frequently, and even when it's not hit, it is nothng to go 50-75 pips against him. So his method can't just be scaled into (instead of 200 lots you trade 0.2 lots and instead of 100 pip SL you have a 30 pip SL as an example) or your losses will add up too fast to regain profitability. So be mindful of that....
  • #11
  • Oct 30, 2009 2:35pm Oct 30, 2009 2:35pm
I use to move the market with just 1 micro lot. It was a fact, everytime I took a position it would go the opposite direction, it was a guarentee I alone was influencing the entire worlds currency market.
  • #12
  • Oct 30, 2009 3:00pm Oct 30, 2009 3:00pm
Quoting Stan
I use to move the market with just 1 micro lot. It was a fact, everytime I took a position it would go the opposite direction, it was a guarentee I alone was influencing the entire worlds currency market.
Yea, that happens fairly often with me too. It's an amazing phenomenon lol.
freedom
  • #13
  • Oct 30, 2009 3:12pm Oct 30, 2009 3:12pm
Quoting moneymaker2
Jacko is a very good trader, but just remember his actions are somewhat different than a normal retail trader. He uses a 100 pip hard stop-loss it gets hit fairly frequently, and ..
Could you please elaborate? Last I checked that wasn't exactly the case....quite the contrary in fact albeit yes he has had trades go awol....
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #14
  • Oct 31, 2009 5:57am Oct 31, 2009 5:57am
Quoting Stan
I use to move the market with just 1 micro lot. It was a fact, everytime I took a position it would go the opposite direction, it was a guarentee I alone was influencing the entire worlds currency market.
Lol, Stan. It is quite scary isn't it? Pull the trigger and BAM it rockets the other way. I think confidence plays a big part in it all. If you're confident your picking a good entry, it makes a big difference imo.
  • #15
  • Oct 31, 2009 8:52am Oct 31, 2009 8:52am
In the end what is the idea?
"So would that be enough to push the market in the direction that you are buying? "
Yes or no in major cases??
  • #16
  • Oct 31, 2009 4:05pm Oct 31, 2009 4:05pm
It was brought to my attention that my earlier post may have been misunderstood to appear I was saying something against Jacko. Nothing is further from the truth, as I have the upmost respect and admiration for Wayne. I was simply attempting to show that a person new to currency trading that was blindly following his or anyone's trades may not come out as good unless they understand the basis and reasoning behind the trades and are funded accordingly.

I apologize if I have offended anyone, especially Wayne, as that was certainly not my intention.

Quoting moneymaker2
Jacko is a very good trader, but just remember although he has a simple trading plan, because he manages a fund of something over $15 million, his actions are somewhat different than a normal retail trader. He uses a 100 pip hard stop-loss and it gets hit fairly frequently, and even when it's not hit, it is nothng to go 50-75 pips against him. So his method can't just be scaled into (instead of 200 lots you trade 0.2 lots and instead of 100 pip SL you have a 30 pip SL as an example) or your losses will add up too fast to regain profitability....
  • #17
  • Oct 31, 2009 4:27pm Oct 31, 2009 4:27pm
to clarify further - the period being referred to is the beginning of 2009 when the volatility was crazy (many many traders got wiped out) thus due to these exceptional conditions Wayne decided to implement a capital preservation policy of moving stops to BE+5 as soon as possible contrary to what his normal trading had been until then - 100 pip hard sl. Thus it wasn't a 100 pip stop that got hit more often than usual but in fact the BE+5 - which is a bit different. Granted no real gains were posted those few trades but the ultimate goal was capital preservation IE NO LOSSES - and that worked out perfectly given the extraordinary conditions of the markets.

I hope that clarifies things properly.

Cheers


ps: to my knowledge Wayne currently uses at least 4 different brokers' currently and trades 200+ lots - Fund is aside.
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #18
  • Nov 1, 2009 1:59am Nov 1, 2009 1:59am
Quoting moneymaker2
No, 50 lots isn't enough to make a difference, regardless of when it is traded. If you think about it, it is the equivalent of just 5 people trading 10 lots, and there are hundreds, if not thousands of people doing that. Jacko trades 200 lots at a time with no impact.

As far as pushing in the direction you want it to go...well, it was going there anyway, right? Otherwise there would be no reason to open a trade in that direction...
It is an amazing thing to see someone such as Wayne who shares his time and experience. It goes to show that years of discipline trading and having a plan can yield trades that most cannot fathom.

It also goes to show the approach of trading higher timeframes and having a longer term goal, plus trading A currency and not 50 different crosses plus using basics like like trend and S/Rs. He is truely a worthy trader and a great person.

Razor
  • #19
  • Nov 1, 2009 9:07pm Nov 1, 2009 9:07pm
Thanks for you answers. I think I was misunderstood though I don't want to move the market. I am just getting to the point where I might want to start investing some serious cash and did not want to mess up my strategy. If the order gets filled 10pips off quoted price I could have a big problem and that is a lot of money to lose if my trade goes against me

Thanks for all your answers it will help a lot!

--MAXSS
  • #20
  • Nov 2, 2009 1:09am Nov 2, 2009 1:09am
A lot has to do with liquidity. Sometimes you will see a 50 pip spike on a pair for no apparent reason but it's outside New York or London trading hours.

Then you might hear that some bank has lost x million putting through a deal for a client. Just like us, sometimes they can't get a fill.
Gone to a better place
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