Ignorance is bliss ...so they say.
I am done with Futures... going back to Forex
- Thread starter heispark
- Start date
Yor math.. is set up too look like volume is constant.. when you say what is the impact of a 1 lot? you mean for the year? for the day? for teh hour? the minute? the second? I mean you are asking what is the impact of a 1 lot on the day? or instantaneous impact? You have be real with what you want to know or find out. 4587 vs 4586 lots actually tells you nothing about time or impact? so yu cannot go dividing a 1 lot into it for a percentge move. that is wht a 3rd grader learns to do.. wow and someone actually thinks you are on the right track.. here let me show you how a 2 lot move the mkt more than an 80 lot! is this ELITE really this DUMB! wowOK tell me after the close when I bought or sold eminis. As it would move the market accordingly to you. We will see how hard the market jumped higher or crashed.
I never mentioned anything about volume being constant. Don't know where you found that.
I feel like I see these questions and answers on here and it is a strategy for you guys to get me to go to MOMENTUM IGNITION because my blood F'ing boils over at how ridiculoulsy retarded a majority of this stuff is.. like elementary stuff. How can you compete with the best, richest, smartest, fastest in the world if you do not understand how it all works? wow here a nice picture for ya base line is a 3 lot trade.. you can see that the 3 lots moved the market just as much as the 40 lot and here is another picture of a 100 lot that moved the mkt just as much as a 3 lot.
It is called a "MATCHING ENGINE" or a "TRADE ENGINE"
lets start with this and drill down.. to the newbie it looks like these 60, 120, 120 contracts really moved the market.. but they did not.. it was actually the 20 or 30 one lots that moved the market that got filled inthe microsecond realm before or after this large trade match. a trade is a match.. right.
Attachments
Traders buy and sell at matched trades at different prices regardless of the size! if someone wants a huge order filled to buy and someone else wants a huge order to sell at teh same price then there is no market impact.. hence the BLOCK TRADE..whoa..
If you want to buy 1000 and the limit order book shows 4 levels of emini to fill a thousand.. then you do not know if they will be cancelled before filled even after you press the mouse.. and then you have stops and MIT orders and icebeerg orders and all kinds of stuff that can either increase your levels of fills or decrease your levels of fill.. anyway.. I hope this cleared somethings up for you. Assuming your 1 lot is a mkt order and you do not trigger a bunch of stop losses then probably going to move the mkt a tick. if a limit order to buy.. then probably a down tick and a limit order to sell an uptick. which is counterintuitive to going with the trend. LIMIT orders are COUNTER TREND TRADES no matter what the size..
Which proofs that there is no 1-1 link that small trades move the market.
3 lots moved as much as 40 lots.
100 lots moved as much as 3 lots.
That proofs rather that there is no link at all, 3 lots or 100 lots, it doesn't matter.
Other elements define what will happen.
what it does prove..is THAT ALL TRADES MO MATTER HOW SMALL OR BIG MOVE THE MARKET and this is why paper trading is stupid because a 1 lot has mkt impact.. the market impact is PRICE!