having a multimillion dollar account... | Forex Factory

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having a multimillion dollar account...

  • #1
  • First Post: Feb 25, 2006 11:42am Feb 25, 2006 11:42am
How much money do "small" market makers trade with typically? In other words, at what point does someone become a blip on the radar?
  • #2
  • Feb 25, 2006 3:22pm Feb 25, 2006 3:22pm
it is doubtful that anyone that posts in these forums would ever trade adequate size to ever be a "blip" on $1.5 trillion/day market...
  • #3
  • Feb 25, 2006 3:28pm Feb 25, 2006 3:28pm
Quoting jimsasya
How much money do "small" market makers trade with typically? In other words, at what point does someone become a blip on the radar?
if you move 50 full lots per month your broker will start to notice you for sure...
Relax and be happy.
  • #4
  • Feb 25, 2006 4:12pm Feb 25, 2006 4:12pm
Quoting merlin
if you move 50 full lots per month your broker will start to notice you for sure...
I open and close about 5-10 positions of 1-2 lots DAILY
This makes about approximately 15 lots daily and 300 monthly. Do you mean anyone notice my trades? I dont think so.
time is money! Z
  • #5
  • Feb 25, 2006 5:07pm Feb 25, 2006 5:07pm
Quoting Zazzy
I open and close about 5-10 positions of 1-2 lots DAILY
This makes about approximately 15 lots daily and 300 monthly. Do you mean anyone notice my trades? I dont think so.
I think Merlin meant 50 full lots per transaction, which means that your position size is normally around the $5 M mark...Even if he meant that the trader moving 50 full lots per month, this is still worth a look...A $5 M monthly turnover is big, real big for a retail trader....By the way, don't count hedged positions...


Thanks,

Nader
  • #6
  • Feb 26, 2006 1:28am Feb 26, 2006 1:28am
If you did have a multimillion dollar account and you have a trading system that produces roughly 2% per day; so it doubles every 2 months or so. Do the rules of the game change for me if I was trading with 500k and bump it up to 5 to 10 million (This is assuming that my system is sound and my ability to manage 5 million vs. just 500k is the same)? As my broker (or any other market movers for that matter) start noticing, what would be the adverse affect in this for me? Is 5 to 10 million dollars enough for my broker and others to start working the market against me? Are there any other problems associated with trading with a large retail account?

As always, any input would be appreciated.
  • #7
  • Feb 26, 2006 3:17am Feb 26, 2006 3:17am
Quoting jimsasya
....As my broker (or any other market movers for that matter) start noticing, what would be the adverse affect in this for me? Is 5 to 10 million dollars enough for my broker and others to start working the market against me? Are there any other problems associated with trading with a large retail account?
....
I asked nearly the same question few weeks ago.
Check this thread out:
http://www.forexfactory.com/forexfor...ead.php?t=4214
time is money! Z
  • #8
  • Feb 26, 2006 4:07am Feb 26, 2006 4:07am
Quoting jimsasya
How much money do "small" market makers trade with typically? In other words, at what point does someone become a blip on the radar?
If you will trade 50 Lots by a trade broker can be very upset because it is sure that there will be lack of liquidity.
  • #9
  • Feb 26, 2006 2:52pm Feb 26, 2006 2:52pm
i once heard of a retail trader who was putting 10million lots on there retail platform and got a phone call from his retail broker asking him to switch to there liquidity provider a large prime bank. i believe the retail broker gets some kind of kickback from there prime bank. remeber all retail broker only has one liquidity provider by this trader switching it gave him better liquidity and less stress for the retail broker.
If I Go Broke Trying Then I Will die happy.
  • #10
  • Feb 26, 2006 4:29pm Feb 26, 2006 4:29pm
Quoting Zazzy
I open and close about 5-10 positions of 1-2 lots DAILY
This makes about approximately 15 lots daily and 300 monthly. Do you mean anyone notice my trades? I dont think so.
zazzy, if you are talking full lots here (100k lots) then yes, most likely you are a 'blip' on your broker's radar. unless you are trading with a huge broker like FXCM, but even then i bet they would know about you. it doesnt take much in the forex world to bring attention to yourself, thats the nature of the brokers in this industry.
Relax and be happy.
  • #11
  • Feb 26, 2006 6:57pm Feb 26, 2006 6:57pm
With all the crazy things that have happened in the business world, i can not imagine myself allowing a single account reach such amounts before i would open additional trading accounts.

I know one lady who has 15 accounts each just over $100k. I don't know how she manages them all, except basicaly she will use a different account on the next trade then cycle through each one. It works for her, and if one goes down or has some tech difficulties blocking accounts for whatever reason, she can still trade the others.
  • #12
  • Feb 27, 2006 4:11am Feb 27, 2006 4:11am
some interesting stats:

This is a 5 month statistics so the numbers I give are pretty reliable.

I trade about 60 trades per week. My target is 120 pips. I almost manage to do this in average. So in average I earn NOT MORE then 2 pips pro trade. And my broker earns 2 pips OR MORE spread pro trade.

Do you see what I see? NO MATTER how much I earn my broker earns the same or a bit more!

So.... guys.....can I relax and assume I am not seen as an enemy for my broker?
time is money! Z
  • #13
  • Feb 27, 2006 10:54am Feb 27, 2006 10:54am
Quoting Zazzy
I trade about 60 trades per week. My target is 120 pips. I almost manage to do this in average. So in average I earn NOT MORE then 2 pips pro trade. And my broker earns 2 pips OR MORE spread pro trade. ..
I won't go into the details, but my entry into the FX market saw my training on 1 min charts and so i was instructed to set a 5 to 8 pip profit for each trade. I had about 500 to 600 trades in the first three months, half of which was a live micro-lot account. . . My b r o k e r made a whole bunch of money off me !!! LOL. I was HIS best friend during those months!
  • #14
  • Feb 27, 2006 11:43am Feb 27, 2006 11:43am
Quoting Zazzy
So.... guys.....can I relax and assume I am not seen as an enemy for my broker?
i was never saying you were an enemy of your broker. as you pointed out, you are a good friend to them. the point i was trying to make is that you are on their radar, just as any good client would be with any company.
Relax and be happy.
  • #15
  • Feb 27, 2006 11:56am Feb 27, 2006 11:56am
Quoting merlin
i was never saying you were an enemy of your broker. as you pointed out, you are a good friend to them. the point i was trying to make is that you are on their radar, just as any good client would be with any company.
well I exaggerated

the fact that my broker makes more money then me doesnt disturb me

the point is: I earn. That is enough to trade and be happy accordingly to your advice
time is money! Z
  • #16
  • Last Post: Mar 3, 2006 3:20pm Mar 3, 2006 3:20pm
Assuming one starts with a very very very small account. With an average of, say, minus 50 pips to plus about 100 to 200 pips a week, it takes about 12 months to reach maximum capacity. If you use one of the retail forex companies that guarantee liquidity to 10 mil contract size, at maximum capacity you trade about $1000 a pip.

So you will be squeezing about $400 kinky per month, about $1 meow every 2 months out of the company. With an occasional one or two home runs a month you will be sqeezing $1 meow that month out of the company.

If you continue compounding the profits among say 10 good forex companies you will be sqeezing about $4 meow a month out of them.

The cash must flow in the right direction, if it doesn't the quick in flow will result in an quicker out flow.
When the dog chases the cat and the cat chases the mice, the mice must be very careful with the path he threads, for he might get stuck when there are too many mousetraps.
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