Quote from neowang:
In stock market, often an investment bank, a hedge fund or even an individual investor is able to move the price of a stock and make money by control the price movement.
What about FX market? an individual investor is obviously not able to move the price of a currency pair. How about a hedge fund? or a bank? Are they using the same way to make money in FX market as what they do in stock market?
Thanks!
Yes, but only for a short period of time. Even the CB of England recently needed 300 mill to rescue the GBP.
I can tell you that even a 250,000 USD order on a stock that trades at 500k shares a day does not do much damage. The problem is that you end up creating your own slippage.