liquidity in Forex

clambill · Sep 17, 2009

I don't know if anyone here wants to "brag" about putting on large size, but I started wondering lately about liquitidy since I developed a new method that seems promising. I only plan to trade 1 mini lot at a time for a while but if I get up to 10 standard lots at a time, what are my chances of getting filled in the EUR/JPY in ten seconds at a good price?

Is 10 standard lots "easy" to trade?

IShopAtPublix · Sep 17, 2009

Quote from clambill:

I don't know if anyone here wants to "brag" about putting on large size, but I started wondering lately about liquitidy since I developed a new method that seems promising. I only plan to trade 1 mini lot at a time for a while but if I get up to 10 standard lots at a time, what are my chances of getting filled in the EUR/JPY in ten seconds at a good price?

Is 10 standard lots "easy" to trade?

You should be filled instantly even if you "clicked" 100 million units of EUR/JPY

davidmaria1 · Sep 17, 2009

Quote from clambill:

I don't know if anyone here wants to "brag" about putting on large size, but I started wondering lately about liquitidy since I developed a new method that seems promising. I only plan to trade 1 mini lot at a time for a while but if I get up to 10 standard lots at a time, what are my chances of getting filled in the EUR/JPY in ten seconds at a good price?

Is 10 standard lots "easy" to trade?

Ok, Clammy. Give up the method.

clambill · Sep 17, 2009

Quote from davidmaria1:

Ok, Clammy. Give up the method.

Well, actually, I'm not claiming to have found the "Holy Grail" of trading. But, I DID want to find some methods that are at least COMPATIBLE with price fluctuations you often see in the markets. And right now I have a couple of ideas that seem to "fit" like a piece of a puzzle with familiar price movements. Whether it pans out or not may take a bit of time to confirm but I'm fairly impressed with what I've seen in the last few weeks.

cstfx · Sep 18, 2009

Quote from clambill:

I don't know if anyone here wants to "brag" about putting on large size, but I started wondering lately about liquitidy since I developed a new method that seems promising. I only plan to trade 1 mini lot at a time for a while but if I get up to 10 standard lots at a time, what are my chances of getting filled in the EUR/JPY in ten seconds at a good price?

Is 10 standard lots "easy" to trade?

As is loosely thrown around on these forums, 10 standard lots is only 1mm (or did you really mean 10MM, as 10 lots would accurately be described?) would have no problems getting filled at your price on a market order with zero to minimal slippage under normal circumstances, altho some bucket shops will slip you on every market order. To see what can be executed, take a look at an ECN's feed and their depth per pair and you should have an idea of what can be executed when you want. MBT is good demo to see this.

clambill · Sep 18, 2009

Quote from cstfx:

MBT is good demo to see this.

You mean MB Trading? Yeah, I meant only 10 standard lots which I believe represents 100,000 which would mean 1 million.

Do you mean that they have something similar to the time and sales in the stock market?

chipmunk · Sep 18, 2009

ok i mean a 10,0 lot is still quite small. ($1M)

So when do you start running into problems with getting filled fast?

50.0 ($5M+)

more....please big traders enlighten me.

cstfx · Sep 18, 2009

Quote from clambill:

You mean MB Trading? Yeah, I meant only 10 standard lots which I believe represents 100,000 which would mean 1 million.

Do you mean that they have something similar to the time and sales in the stock market?

MBT = MB Trading

There really is no "true" time/sales figures in fx because each broker has their own set of liquidity partners to offset their trades/take the other side. What I refer to is the depth of field feature (similar to Level II quotes) that the pairs have. With it, you can see the sizes being offered at their respective bids/ask prices. Unlike Level II, what you will see are cumulative totals, which is what you want. You want to see if a 1MM order can easily be absorbed at a particular price point.

As you can see, for the most part, getting your order filled would not be much of a problem.

craig · Sep 20, 2009

Instant Fill on your ticket! 1 million is nothing in the FX world!

I imagine you could trade $1000 a pip with no problems.