Liquidity? | Forex Factory

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Liquidity?

  • #1
  • First Post: Jun 24, 2006 7:21am Jun 24, 2006 7:21am
Hi All,

I have been playing with a new trading strategy on a demo this week and have been using trades of 2 standard lots on a 100:1 account exclusively. With a $5k starting point it has given me $915 in profits in 4 active trading days. I am curious, though, about liquidity for a real account.

How easy is it to move 2 standard lots? Is a trade like this pretty much guaranteed to be processed? If so, how many lots is considered "normal" and can be moved at pretty much any time 6 AM - 10 PM EST (my trading hours). My strategy has so far been around 98% accurate (meaning either profit or break even per trade).

I mainly use this method on EUR/CHF but I have made a few trades with EUR/USD and USD/JPY as well. But, EUR/CHF constitutes over 90% of the trades I have made so far on this demo -- so my question on liqudity applies mostly to this pair.

Thank you for reading.

- Jacob
  • #2
  • Jun 24, 2006 7:54am Jun 24, 2006 7:54am
Well, depends on the pair, but EURUSD is the most liquid. I have seen routinely 100 - 200 lots trades execute without manual execution. Your 2 Lot trade should be automatic for any broker, even retail brokers. It will not even be noticed.

There is one trader's statement I have seen that he regularly trades 100 lots at a time.

Scott


Quoting sundownz
Hi All,

I have been playing with a new trading strategy on a demo this week and have been using trades of 2 standard lots on a 100:1 account exclusively. With a $5k starting point it has given me $915 in profits in 4 active trading days. I am curious, though, about liquidity for a real account.

How easy is it to move 2 standard lots? Is a trade like this pretty much guaranteed to be processed? If so, how many lots is considered "normal" and can be moved at pretty much any time 6 AM - 10 PM EST (my trading hours). My strategy has so far been around 98% accurate (meaning either profit or break even per trade).

I mainly use this method on EUR/CHF but I have made a few trades with EUR/USD and USD/JPY as well. But, EUR/CHF constitutes over 90% of the trades I have made so far on this demo -- so my question on liqudity applies mostly to this pair.

Thank you for reading.

- Jacob
  • #3
  • Jun 24, 2006 9:56am Jun 24, 2006 9:56am
Scott,

Thanks for the swift reply. I suppose I will have to test my limits on the EUR/CHF pair once I complete my 30 day demo and start my real account. From the information I have read through Google it sounds like this pair has plenty of liquidity -- I'm just wondering what my limit will be.

I would be very pleased if I could even do 5 - 10 lots at a time once my account grows a bit. Does anyone know if moving 5 - 10 lots could become a problem during slow times?

Thanks again!

- Jacob

Quoting smjones
Well, depends on the pair, but EURUSD is the most liquid. I have seen routinely 100 - 200 lots trades execute without manual execution. Your 2 Lot trade should be automatic for any broker, even retail brokers. It will not even be noticed.

There is one trader's statement I have seen that he regularly trades 100 lots at a time.

Scott
  • #4
  • Jun 24, 2006 10:37am Jun 24, 2006 10:37am
in fx liquidity is a button push.bang your in or out....not at all like stocks or futures
Same Whore .... Different Dress
  • #5
  • Jun 25, 2006 12:05am Jun 25, 2006 12:05am
Quoting sundownz
Hi All,

I have been playing with a new trading strategy on a demo this week and have been using trades of 2 standard lots on a 100:1 account exclusively. With a $5k starting point it has given me $915 in profits in 4 active trading days. I am curious, though, about liquidity for a real account.

How easy is it to move 2 standard lots? Is a trade like this pretty much guaranteed to be processed? If so, how many lots is considered "normal" and can be moved at pretty much any time 6 AM - 10 PM EST (my trading hours). My strategy has so far been around 98% accurate (meaning either profit or break even per trade).

I mainly use this method on EUR/CHF but I have made a few trades with EUR/USD and USD/JPY as well. But, EUR/CHF constitutes over 90% of the trades I have made so far on this demo -- so my question on liqudity applies mostly to this pair.

Thank you for reading.

- Jacob

You are talking about 2 std. lots, which means $200,000, this should not be a problem at all for almost all retail brokers & market makers...However, I am not sure for the EUR/CHF, but I think it won't be a problem even if you are trading a 10 std lots, which is a $1 M...

The simplest method to make sure is to email your market maker or broker & ask them directly....


Thanks,

Nader
  • #6
  • Last Post: Jun 27, 2006 10:50am Jun 27, 2006 10:50am
I am told the Forex market moves $1.6 Trillion in a day.

Liquidity should then be a problem somewhere above the level of a billion dollars, or even possibly above the hundred million dollar mark, depending on what else is going on.

(and on weekends, and during news)

The possibility of your trades affecting the very markets they are aiming to predict and profit from might creep in around this level also, especially if you are aiming to scalp using billion dollar positions.

Let me know when you have that problem, please, and I'll try to help.
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