It depends on the time and volume in the market. When trading futures you can see exactly how much should buy at a certain time to influence the price by a pip or point. Try open a demo with a futures broker that offers DOM, that should clear up your questions.
<scottyfromau> As you said, it is always change, but how the broker determine the price increase since there are a lot of brokers and banks? Are they all connected?
Hello, anyone know that how many standard lots I should buy (for example EUR/USD) only affect its price to increase 1 pip?
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According to Bloomberg: (regarding March 17
"Today’s step is the third time Japan intervened after six years of a hands-off approach ended in September 2010. The BOJ, at the behest of the Ministry of Finance, sold 692.5 billion yen ($8.7 billion) in March, when it led a coordinated effort with the Group of Seven to counter a jump in the yen on speculation insurers would repatriate foreign cash after the quake. "
"Today’s step is the third time Japan intervened after six years of a hands-off approach ended in September 2010. The BOJ, at the behest of the Ministry of Finance, sold 692.5 billion yen ($8.7 billion) in March, when it led a coordinated effort with the Group of Seven to counter a jump in the yen on speculation insurers would repatriate foreign cash after the quake. "
<scottyfromau> As you said, it is always change, but how the broker determine the price increase since there are a lot of brokers and banks? Are they all connected?
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yeah its all connected via banks and broker etc, the broker doesn't determine the price change, it depends on the banks and how much currency they've got. obviously if its sold out at 1.3501 they're not gunna give more away for 1.3501, they'll transact at 1.3502.
Hello egadsforex, thanks for your reply, it was USDJPY right? but other related JPY pairs also affected, how to determine?
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Technically it wasn't USD/JPY as the BoJ simply sold Yen. Therefore all yen pairs were effected.
This is no different than what you are doing. If you buy GBP/USD for example, you are buying the GBP... period. So if you're going to buy enough to move the market it will affect other GBP pairs. Just as the yen intervention did.
yeah its all connected via banks and broker etc, the broker doesn't determine the price change, it depends on the banks and how much currency they've got. obviously if its sold out at 1.3501 they're not gunna give more away for 1.3501, they'll transact at 1.3502.
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So, you mean banks determine the price? Broker only follow the bank's offerred price? If yes, then when the banks close, the broker still running, how they get the price from banks? How about ECN?
Technically it wasn't USD/JPY as the BoJ simply sold Yen. Therefore all yen pairs were effected.
This is no different than what you are doing. If you buy GBP/USD for example, you are buying the GBP... period. So if you're going to buy enough to move the market it will affect other GBP pairs. Just as the yen intervention did.
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May I know how and where (from bank) BOJ sold yen?
May I know how and where (from bank) BOJ sold yen?
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ummm.... Bank of Japan?
The point here is that (from the article) it cost roughly $29 million per pip for the intervention. No matter how someone may try to bend and twist those numbers, moving the forex market is simply not within the realm of an individual, retail trader. Remember that this is a $4 TRILLION per day marketplace.
