You are right, I did say I would not respond but given that you are the most ridiculous new poster I have encountered in this community I did. I know there is no value and your moronic assumption on my real life experience as a trader are yours to keep.
I never said that you placed big orders, but your question about an upper limit suggests that you think you could enter a trade that has actually an impact when it has been pointed out to you it does not. I could give you a detailed answer as of why not, but you have displayed in a few short posts that you are the type of member who is not worth a real response.
I will make one final attempt at an indirect answer for others who browse this worthless threat. Being arrogant is the least of your problems. Let’s say you take your arrogant, POS-self to the farmers market and decided to buy a bag of cow dung for your living room. You find someone who is selling it and there are others like you interested in it. Now we are talking about supply and demand.
What you fail to understand is that your cow dung is not being sold on the market so therefore no matter how much you need it has no impact on the actual market and the price does not move.
Members like you start threads that turn ugly as you have no value at all. I responded this as I had too much time on my hand. Again, think what you want as it has no impact on real life. I will let you close this by throwing away some more insults and this is my final response to this thread which offered no value to anyone at all.
I will let you have the final say here, it is your thread and you can insult all you want. You have to pick your battles and since it appears that life has dealt you a very bad hand I will let you cruise to this online victory!
Watch out everyone, Wheeels will soon start trading and move the markets. Here I was thinking an earthquake caused a tsunami and killed tens of thousands of people when all along it was Wheels taking a leak in the ocean.
I have always heard that a market order of a yard in size will move the market. But you have to quantify that. Suppose some institution put on a position that moved the market 15 pips, if the position is one that will be left open while the market moves 500 pips then that 15 pips is simply a small price to trade that big. But I think generally those larger institutional positions usually are not put on as a trade in search of profits between the entry and the exit. Most of them are hedges against positions just as large on their balance sheets that came about through international business operations. With that, the hedgers are not overly concerned about the move their entry makes and their dealer(s) look to front-run the order and score a few pips on the side while processing the hedge.
Great info, Thanks. As usual though the answers to one question lead to another question… are brokers ever set up to handle retail order/s of that size because in conglomeration a bunch of retail traders might require it, or do they get away with carrying much less than this and just juggle traders against one another? Also what happens if/when a broker sees an order larger than whatever capacity they would normally be prepared to handle?
I asked an FXCM rep about this once, their maximum order is 5000 lots I think, but he told me you can make as many maximum orders as you like… That must have some implications about what they can provide without it causing problems, no?
*edit… probably just answered my own question on this one, it just occurred to me (as I clicked post, of course) that the real world results of rapid/large orders are clearly demonstrated every day during news events… if you stretch your brokers ability to provide liquidity spreads will widen to whatever it takes for them to protect themselves. FXCM protects itself by insuring it can adjust it’s spread between each 5000 lot order.
Market makers cannot prevent themselves from taking on a net short or long position against their traders unless they prevent some of them from trading and that would be bad for business. They all will ultimately have to forward their exposure into the interbank market to prevent holding a net position (unless they want to, but that is probably not the norm). This is different from the Specialist/Market Maker on the NYSE where his book represents the ENTIRE market (at least it used to, now dark pools are gaining market share and the NYSE monopoly is declining). The NYSE market maker can simply move his bid and/or ask to keep the market profiting him, he does not need to keep prices close to another market as do FX dealers looking to peg their bids/asks as close to the interbank market as they can.
So if an order or group of orders comes into a NYSE market that is large enough to really move prices, the specialist will get out of the way and let them move the market prices. The fx market maker will do the same thing but let the move occur in the interbank market rather than simply in his own book by taking the other side of those orders against the traders and trading the same way as those traders in the interbank market. If that is big enough to move the whole interbank market bid/ask, then so be it.
After a month and a half live on a small account ($1000) I’m down 4%, which certainly isn’t keeping me up at night and isn’t out of line with expected drawdowns, we’ll see where I’m at after 6 months or a year. What I can report with 100% certainty is that live trading has worked EXACTLY the same for me as my demo trading did and my time using a demo account was INVALUABLE. The demo accounts I trashed and the experience I gained in those months kept me from giving up after initial large losses and gave me the confidence to stick with my plan in spite of a slightly rocky start.
Bear you’re doing newbs a real disservice telling them they’re wasting their time on demo, and you’re helping to ensure some who might have been successful never will be.