Do 10 lots or 15 lots scalping trades move the market (eur/usd), do they get filles

hi,

i am trading demo. i am wondering what will happen if i would real trade 10 lots, or even 15 lots. does the market move? does it get filled when you scalp?
i am demo trading with dukascopy, and their lv2 shows an average of 90-140mio constantly traded. so i could be filled IF their figures are correct and true.

anyone of you have experience in trading such a high volume?

thank you a lot

Well, no to move the EUR/USD by one pip, you need at least 10-15 millions for 1 pip, so do the math.
Happy Trading!

Hopefully the guy above realises that 1 Dukascopy lot is $1,000,000 :wink: big leagues trading lol

And no it won’t move the market - primarily because your position will be matched against other traders’ positions and hedged away by Dukascopy.

Dukascopy can have as much as $320m in volume on eur/usd long after europe closes and the platform promises 1 click fills up to 200 lots (for their hedge fund and banking clients) via their liquidity providers including JP Morgan amongst others.

Hope this helps.

Not sure… but from what I have read in different articles and forums, in quiet hours you need at least $5M and during busy hours around $80M

yes i know. but isnt 1 lot 100.000?
but if you would buy 50 lots. you would actl move the market? it sounds much, for one person it might be, but for a small group it wouldnt be so much.

I know someone who trades 25 lots per order of 6E (euro fx futures) on a daily basis and doesn’t have problems. I assume if your going to be trading 10-15 lots i suggest futures because it is a regulated market.

The first issue is your broker or the bank if the trade is passed straight through has to take the other side of your trade. You are trading paper contracts, you are not buying real currency. So right there your anticipation is unjustified. If anything I dare anyone to trade $80m in quiet hours. JP Morgan get that order from your broker and short the real market, your money is gone. This is why trend followers win. If you truly trade the trend, in hot liquidity, the market will see you right and no single entity can redirect the market on the back of your small multi-million position.

If you beat your broker (who has the other side) they owe you so it all depends how much and when as to whether ur actual position ends up as a real trade in the markets. If they can’t absorb ur position more chance you can affect the market.

Also note that almost all retail brokers have a max lot size - there is a reason for that. Some are 5 std lots max, some 20 std lots. Depends.

Dukascopy has hedge fund clients. When they started you needed $50,000 just to get retail access with $250,000 for an institutional hook up. On their platform they trade Vols. where 1 is $1,000,000.
If you want a standard lot your Dukas position is 0.1

And if you push the button on 50 that’s $50,000,000 and likely this will be sent out to the bank to do whatever they want - ESP if you use slippage control and want ur price within 2 pips say. All european CFD contracts have 2 or 3 days to be settled - something like that. They can buy 50m or half in the real markets or buy option contracts or buy/sell gold or whatever they want depending on whether they think you bet right or wrong and depending on how they want to hedge against you if you are right or they don’t know what the markets will do.

It’s complex when you deal paper derivatives.

Ultimately, trade the prevailing trend and it doesn’t really matter what goes on once you push the button.

1 Like

The scalping is an extremely popular Forex trading strategy. This is an extremely fast and aggressive trading style. The deals do not continue longer than several minutes; as a matter of fact most scalping trades are closed within the first 100 seconds. The scalping strategy is not as easy as it seems at first, because the difference between the opening and the closing price should be profitable enough to cover the spread. In the end of the day, the profits and losses are not huge by themselves, but the great number of deals generates big overall profit/losses.

I usually trade five to ten lots, depending on circumstances and currency pair; with scaling into winning trades, I regularly have 15-to-20-lot-positions open … and I never had any problems getting orders filled.

Those are still small trades, compared to the huge positions moved by institutional and commercial traders all the time, so there should be no problem at all getting them filled … if you have a decent broker.

And certainly nothing below 1,000 lots (100 million) will move the market, no matter the session or time. The only thing that will happen is you won’t get your order filled all at once.

Cheers,
O.

Hi martin,
I wish to know how to do scalping effectively as I have tried scalping several times and the result was negative. It seems not easy for me. It would be great if you can give me some Ideas on scalping EUR-USD.
Thanks

Hi gator1989,
Here you are good explanation about scalping.

Forex Scalping - definition, economic indicators, technical patters and moreForex Scalping - definition, economic indicators, technical patters and more

Good Lord, who has written that article?

It is not only drawn up in bad English, but rife with inaccuracies and outright incorrect statements.

Don’t waste your time reading it.

O.

Thank you for your reply, I will sure go through it :slight_smile:

To sum it all… Forex is not penny stocks. You can not move the market with the money which you can provide. Yet you can scalp, and hedge your position to secure profit during market break outs!