How much can forex market take?

Hi all,

let’s assume we trade forex. System is good, it returns you 30 percent per month. Let’s not stick to this is it possible or not, but let’s assume we make 30 percent return on investment every month. Let’s assume forex daily change is 4-6 000 000 0000

If our initial capital is 10 000, this would make compounding interest in

1st year: 232 980
2nd year: 5 427 987
3rd year: 126 461 703
4th year: 2 946 315 521
5th year: 68 643 509 805
6th year: 1 599 262 334 542

Now where is limit? What happens if I buy/sell 1000 000 000 USD/CAD at a single trade? Does market crash or do I even manage to get such an amount from fx-market? Is there enough bears/bulls?’

How about is I spent only 1000 000? Where goes limit that it would have some kind of affects to markets?

What kind of limits there would be? How would broker handle this situation?

Its a great game to play on a quiet afternoon - speculating how rich you would be if you did this or if you did that.

As long as you realise this is just a daydream…

You must have lots of spare time

With a fair success rate and chance/reward proportion, a devoted forex informal investor with a good methodology can make somewhere in the range of 5% and 15% each month, because of influence. Keep in mind, that you don’t require a lot of money to begin; $500 to $1,000 is generally enough.

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Guys, you are stuck to wrong question.

I didn’t ask if it is possible or do I want to be rich. Actually I asked you to skip this question.

Question was what is amount of money that affects to fx market so that price would dramatically change or there would other change and what are those changes?

I think the broker’s liquidity providers would have issue with the volumes being traded before the market is impacted.

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I answered the wrong question. But I’m not sure under what circumstances the real question could ever be the right question.

Hi Sampo,
There are limits on trade sizes due to broker and inter-bank liquidity. We limit our maximum trade size to $20 million USD per trade.

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I think you will get few hick-ups in matching your rate.

this is a perfect answer i think

I think so too, thanks.

Your question is wrong. With so called Forex brokers - you are just betting with the broker. You have no effect whatsoever on actual Fx market. Ofcourse unless you are a big name dealing big money direct with banks.

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Forex is a true global market, with buyers and sellers from all over the world trading trillions of dollars every day. Because foreign exchange trading has become such a worldwide industry, macroeconomic events from all around the world now have a larger influence in forex than ever before. Traders are no longer bound by popular currencies, although they are an excellent place to start.

I started to think brokers part on this problem. Everybody knows stories and stories about brokers.

Ho do you know broker doesn’t play against you? Dealing desks etc are familiar, but how really trust to your broker?

This would be a good question for any members that work on the trading floor on a bank… if there is any? I’m pretty sure once you start trading with a certain amount of digits in your balance most brokers are going to start raising conversations particularly to protect their liquidity providers. I know that if you were to apply such a model to cryptocurrency markets and your orders actually went to market not just a cfd that may or may not make it to an otc order. Then you can eventually move the market with enough given capital, being a market maker as it were. But forex is a different ball game. I believe the banks have an infinitely deep pocket to ensure theire spread remains in theire favour. And as most forex is traded by algorithms your very unlikely to get the better of them financially, you may fill out one order but another will appear. I read that at peak times in the market you could drop 6billion into positions and not even move price a singular pip. Problem here is that most run of the mill brokers are going to have to get a requote if orders exceed say around 500million so getting orders filled aren’t going to benefit you directly without having further capital to fall back on, the dealer never goes all in so you’d be at a disadvantage when you are . Also all this is going to be useless if your broker doesn’t have access to the kind of liquidity providers able to back your order in the first place. You’d need to be talking institutional grade.

The boss of a UK firm once said that the penalties for getting caught trading against a client here are too severe for it to be financially worthwhile. Plus the chances of keeping it secret are nil, as the next employee to be made redundant would be straight round to the FCA and spill the whole story.

Which means its only possible that a rogue employee could trade against a client but not the broker. even then, they would have to make huge money to make the risk worth taking.

As for brokers who are not heavily regulated - its anyone’s guess.

The forex market can take a lot out of you, especially if you are not used to it. When you first start out, don’t be surprised to feel depressed and hopeless at times. That being said, I would still recommend using forex, since it can give you a lot of endorphins and dopamine, and is in general something that can help your mental health.