90% Traders or 10% Institutions? Who has more power?

Hello traders, do you think that the price fluctuations, breakout, volatility are caused by 90% Traders who Buy and Sell around the world or the 10 % Large institutions and banks who are trading millions and billions per transaction that move the prices up, down and side way?

What's your say? Who has more influence or more power to move the prices?

do you get off, on posting little questions here and there?


and your facts are erroneous retail traders are not 90% of market share.

do some research.

https://www.bis.org/publ/rpfxf10t.pdf

Check 2. Turnover by counterparty

Then tell me where you got the 90% traders from.

1% institution > 90% traders, do the math

Retail traders amount to nothing in this market. In fact unless you make a trade for at least 10,000 units of a currency, the banks don't touch it. Any trade less than 10,000 units is made against your broker. So all of you trading micro accounts, your trade is never even registered in the real market, hence your trade has no effect on the movement of price.

If I remember retail is risen to about about 10% FX turnover.

This is incorrect. Trades are aggregated by brokers and then passed on. Also, leveraged traders are a powerful force in the forex market. It is thrown around so often that they 'mean nothing in this market' but you need to use your head a bit and think about it. Leveraged traders, especially short term players use large position sizes in order to profit from very small % moves. They also all act in unison which means technical levels have a lot of orders placed around them. Stop cascades, reactions to technical levels etc etc are all caused by traders. It is very easy to see in your charts.

dvc, don't believe much of what you read on the internet. Most of it is regurgitated bullshit. You need to think about things for yourself and observe the charts. You post heaps of questions here and get some pretty crappy advise a lot of the time. Spend most of your time observing the market and you will be much better off.

Read the link i posted and stop making up numbers. You get the precise answer to your question what kind of power retailers have in the market.

And of course they do have some power. 1000 small sheep make a big one too. You can watch it when price slides higher/higher or lower/lower around important numbers. Simple stop cascades killing of too small sl retail positions.

No doubt, that the big players such as banks, central banks, hedge funds and institutional are the forces that drive the market. They make about 80-90 percent of the total transactions in the markets, which means that the personal traders are 10% or even less than that. Their strategies are not based on technical analysis and it takes a lot of experience to spot the actions of institutional on the chart. The personal traders are the ones that usually join the market in extreme points (break-up/downs), and the institutional start their activity much earlier and they are the reason for strong supports and resistances.