Hello, I just have a simple question that I cannot figure out.
How many lots (100,000) or units is it required to move and influence the price on the chart, let’s say, for 5 pips?
I would like to know the required amount to impact under low volatile session (i.e. between New York and Sydney) and high volatile session (London or New York).
It all depends on the pair, and the liquidity of that pair.
It may only be a few million units if there are problems with liquidity on the other side of the trade, but if there is a lot of volume, and market activity, you might dump in a half a yard and it won’t move a pip.
I have seen times where there are multiple orders of 500 standard lots within 3 to 4 pips of each other, and the market absorbed those orders, and went the other way.
So, in answer to your question, it’s a largely variable situation, where there is no set number.
To the OP. Be careful here, as a large part of spot fx has nothing whatever to do with market sentiment or turning a profit on a trade but rather off loading currencies and hedging big money contracts from one country dealing in another. Just a word of caution into reading to deeply into level II pending and executed orders.