Crude Oil price manipulation

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bmw335isedan

Hello

I am just curious about something.

I looked at the Depth of Market of Crude Oil during non-active session and there are only about maybe total of 200 contracts within 10 ticks. Does this mean that if I buy 200 contracts then I am influencing international Crude Oil price by 10 ticks?

In addition, what if I bought 3000 contracts just to manipulate the price of Oil would that be possible for short term?
 
1a. There is generally more depth than you can see on the limit order book.

1b. Even if what you see is all of the offer... when you start buying you might attract institutional sellers.

2. 3000 is a large amount. You could drive the market 15+ ticks even during liquid hours. *However*; Lets say you start buying at 100.00 and end up at 100.20 with average price of 100.10. You then need to off-load all your contracts at 100.11 to be profitable but the only buyer at these prices above 100.00 was you to begin with!

To use there these 3000 contacts correctly you'd be placing them in the accounts of speculative money that you are gaming. On top of that you need to structure it properly so the market is naturally working to defend your entry... Failure to do so could result in a serious loss as other participants (on the other side) would regard your trade as a free put option. You'll also have to know how to trade correctly in-line with the exchanges rules or you'd attract attention and be charged with disruptive trading.

This is how the markets really work.
 
Quote from bmw335isedan:

Hello

what if I bought 3000 contracts just to manipulate the price of Oil would that be possible for short term?
More...

Is your order book enabled to also show the exchange implied data ?

In terms of "short term" manipulation - yes, you will actually tickle the market twice.
 
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