Large Lot size & its Impact on Bid/Ask

What is the impact of very large lot size on the market. Say 10, 20 or 50 lot size? How large is really too large a lot size enough to impact them?

1) its impact on bid/ASK. Do they shoot up because of sudden spike in volume created by large lot size?

2) Its impact on fill. When I am trying to close my positions at right time but would it get filled because of large lot size?

3) Its impact on scalping 5-10 pips. Can large lot size make it harder to get in and get out of trade with desired price? Would it create excessive slippage to make extreme scalping (5-10 pips) unworkable?

4) Are there specific trading hours when trading 10-50 lots would be viable?

I would like to hear from experienced traders who trade in large lots. Thanks

20 lots is not a large order. I have seen 200 standard lots get filled instantly without impact on price at all. It comes down to your broker.

to answer your questions:

1. Nope
2. Depends on broker. Decent ones can fill 20 lots instantly.
3. You can scalp with 20 lots again it depends on the broker.
4. Most anytime during asia all the way through U.S. Again 20 lots or so really isn't a big order for most brokers. Check with yours to see what their max single orders are for each pair.

50 lots isn't big. in terms of currency market movement in the erusd e.g. it begins to get interesting in the 500mill area.
the market does not get affected by 50, 100, 200 lots, in case you are not trading smallcap stocks pushed by market letters

so, as my previous speaker said, it really comes down to the bucket shop you are trading at. if you are at the level where you are trading 50+ lots and you worry about getting filled, you haven't done your homework since you are still hanging out at one of the retail bucketshops.

I get filled on 10-20 lots (1-2mil order size) usually within < .5 of the current price during normal market conditions, the market keeps doing it's thing, no sudden spikes etc. It takes a lot more than this to move the market because of your trade size. I all boils down to the liquidity of your pair at that moment.

Hi kerty9,

I have posted this zip file elsewhere, cant remember exactly where. It is similar to your poll with similar results. I posted it on the old MoneyTec forum a few years ago.

Enjoy...

I wonder if you can suggest a process by which one could "do his homework" to find such a broker -- hopefully something better than just going through the phonebook.

Thanks in advance.

dwt

The amount in the yellow boxes is the liquidity available by the liquidiy providers (GB, Bank of America, UBS, etc...).

I get filled at the price shown in the box, no re-quotes.

Does the size of the broker company make a difference? If the broker company is small, with its spread changes more?

Thanks!