Liquidity question based on stock trading experience, & general liquidity experience

[PipHunterE]

Hi friends! I have a question that I know some experienced folks might be able to help with. There's a rule in trading securities where you don't want to make your lot size an unusual number. Multiples of 100 for the most part, and never something like 150, 250, etc. Are there any such guidelines that folks have found in Forex trading? Like never trade 15, choose 10 or 20 type of a thing? Or is 100 best in Forex also? I'm figuring it has to be different, and hard to measure without true volume data.

My other question is, does anyone have any data (or know where to find any) regarding general liquidity experience with certain pairs? I know this changes from second to second (literally). What I mean is, for example there was a trade I had sometime recently. I think it was a CHF pair, though I can't recall which. I had 40 mini lots (400,000) sitting out on a limit order, and didn't get a fill. I determined it was due to there not being 400,000 out there at my price (which was the current price). Now this was demo trading, so a live order may have turned out differently I realize. I may have got 2 lots filled, and the rest sitting in theory. On this question I was just wondering, does anyone have this kind of "typical liquidity" info / experience that is (or isn't) found in a certain pair, generally speaking? Even general experience such as "every time I trade 100 mini lots on EUR/GBP I get filled at several different prices". This sort of data and experience would be extremely helpful to me.

Thanks much!!!

[rhodytrader]

Originally Posted by PipHunterE

Hi friends! I have a question that I know some experienced folks might be able to help with. There's a rule in trading securities where you don't want to make your lot size an unusual number. Multiples of 100 for the most part, and never something like 150, 250, etc. Are there any such guidelines that folks have found in Forex trading? Like never trade 15, choose 10 or 20 type of a thing? Or is 100 best in Forex also? I'm figuring it has to be different, and hard to measure without true volume data.

In stocks a lot is considered 100 shares, so anything that's not a multiple of 100 is considered an oddlot trade. If you were talking about trading directly in the interbank forex market then the lot sizes are more like $5 million. Aside from that, whatever the lot sizes your broker offers is the standard. You trade multiples of those. It shouldn't really matter how many.

My other question is, does anyone have any data (or know where to find any) regarding general liquidity experience with certain pairs? I know this changes from second to second (literally). What I mean is, for example there was a trade I had sometime recently. I think it was a CHF pair, though I can't recall which. I had 40 mini lots (400,000) sitting out on a limit order, and didn't get a fill. I determined it was due to there not being 400,000 out there at my price (which was the current price). Now this was demo trading, so a live order may have turned out differently I realize. I may have got 2 lots filled, and the rest sitting in theory. On this question I was just wondering, does anyone have this kind of "typical liquidity" info / experience that is (or isn't) found in a certain pair, generally speaking? Even general experience such as "every time I trade 100 mini lots on EUR/GBP I get filled at several different prices". This sort of data and experience would be extremely helpful to me.

There is data on trade flows (or at least estimates), but I can't point you to them. Maybe someone else has a link.

In terms of your trade not getting filled on a demo account, that sounds to me like your price didn't get hit.

As for liquidity, I can't recall any retail trader ever talking about getting only partial fills our multiple price points for their fills on a larger order. Keep in mind that the trade sizes you are talking about are small when considered in terms of forex trading volume.

[PipHunterE]

Thanks rhody. So 5m for interbank trades is typical? Any links to data on that subject would be helpful. If you're referring to the COT report I have a link: Free Commitments of Traders Charts That really wasn't what I was looking for though.

I have already seen partial fill in demo trading, that's why I was trying to dig deeper. I'm not trading any true exotics, or else I'd expect to see that more.

Of couse I'm hoping my money is a drop in the bucket, but after having already seen a multi-price point fill on a limit order I know for sure it can and does happen. That particular trade I'm recalling was 40 mini lots, and I got like 32 filled right away, and the remaining filled a couple minutes later since the order, being incomplete, was still live.

On the one that didn't fill at all, you're probably right that my price wasn't hit, but it sure looked like it was. I can't remember if that one traded THROUGH my price or not. If it did I should have been filled with my tiny not-bank money. :-)

Anyone else have any experience on this? Anyone else seen partial fills? With how fast prices change it's not hard to imagine happening frequently. Particularly in a specific pair? If so, and if you'd be willing to share the lot sizes you found getting partial fills in that pair, I'd greatly appreciate it. It will help me with trade planning tactics. Thanks much!

[rhodytrader]

Originally Posted by PipHunterE

Thanks rhody. So 5m for interbank trades is typical? Any links to data on that subject would be helpful. If you're referring to the COT report I have a link: Free Commitments of Traders Charts That really wasn't what I was looking for though.

Interbank and COT are not the same thing. COT is a report on futures positions. Interbank is spot. My comment on 5mm being the standar "lot" size comes from having been a forex analyst in the spot market. The quotes are generally in multiples of 5mm. Obviously, since it's OTC, you could get some odd size trades, though.

I have already seen partial fill in demo trading, that's why I was trying to dig deeper. I'm not trading any true exotics, or else I'd expect to see that more.

Who is your broker?

[PipHunterE]

Great, thank you rhody. Anyone else had such experiences?

[james1962]

Take a look at the track record page of
www.consensus-trading.com That's very good trading.

[PipHunterE]

Well I see thread hijacking is reaching a new high, or I suppose low, on these babypips forums. Is anyone managing these forums? The education lessons and senior contributor blogs are great, but the forums leave much to be desired. Most unfortunate.

Do I have a means to delete a thread I started, or am I permanently obligated to have my posts made into advertisements by spammers and performance stages for would-be experts?

Lame.