Has anyone done a study on the amount of money required to move the FX market a given number of pips ? I assume the boys playing via the interbank market know this. Naturally this will varying according to the time of day etc but it would be interesting to see the data if there is any. If anyone can help or point me in the direction of such data I'd be very grateful.
from my experiences trading the bond market it really depends- basically there are two questions, how much size does it take the biggest players to move the market vs how much size does it take to move the market against the biggest players. assuming you are asking from the point of view of trying to do it yourself, you are pushing against them, so it is how much are they willing to absorb. when they move the market there is less of a fight against them so it moves faster.
I traded some size once in my life (real size) and had no effect on the prices quoted on the Oanda platform. I think MT5 is offering the DOM display. There is only local volume to see when you trade retail. ES
MB Trading displays level 2 information for Forex. I estimated that on average, it will take a ~10-14 million Euro position to move the price on MB Trading by 1 pip for EUR/USD.
No, its not something I would have the resources to do LOL I was just curious to see any data Thanks for the replies.
Another reason to know how much money can move a market of course is the manipulation of the prices. A technique some big traders use on Betfair on a daily basis is there are times when you can move the prices in one direction quite cheaply and then capitalise on the cheap move by trading out for your whole amount at your new price. I'm sure this must go on in the FX market too.
generally speaking, one can move the the gbp/usd with a sudden push of about $10-15 million during asian session due to most of the big players being asleep till London session starts. After London starts you'd need at least $25 million. This was told to me by a friend of mine who is a retired currency trader for Barclays.
Ive seen 400 mil dropped accidentally after 4pm on the pound, moved it maybe 80 ticks with nobody in the market. Ive also traded 50-100 mil pound pieces into major liquidity providers with no movement during europe. So it varies on time, instrument, and who you are trading with Id imagine. PS Sobe - Im over in Brickell. Did my first year in town on the beach but Sobe wasnt 4 me lol.
So, if there's such a huge disparity between certain times of the day I can only assume there are some who take advantage of the differing liquidity. Perhaps Zeljko Ranogajec and his team (who manipulate horse racing prices across the world very successfully) should start to get active in the FX markets.
Couldn't concentrate with all the noise and hot women roaming around?.... I live on Collins & 26th, with a view of all the hotties leaving the Gansevoort day n night. It isnt easy, but fun. Are you the one that trades mostly energy?