Does my order/ lot size push the market in a particular direction?

Discussion in 'Financial Futures' started by bloom davies, Sep 25, 2016.

  1. new to futures. One currency in particular. Euro fx futures . Shower thought: does my order or lot size push the market in my direction? E.g an order to sell 20 contracts at 1.1300.

    And also in futures is there anything else the moves the markets beside buyers and sellers .



    Hope I'm clear enough.
  2. Simples


    The more liquid the market, the more miniscule your orders are relatively until they become insignificant. Sometimes iceberg orders push or stop price some, other times price is pulled to prices where there are more willingness to do transactions. You can find a buffet of patterns, not just one simple behaviour. It's said fundamentals drive the markets. I don't know much about that. TA is more akin to dechiphering flickering shadows in the cave walls, however profits from price and volume more directly.
  3. carrer


    Technically nothing else moves the price, only bids and asks.
    If you want to know your 20 lots are going to move the market or not, look at the DOM. If the bid/ask is lesser or equal to 20 contracts, then you are going to move the market.

    Current price = 1.1300 (bid)
    Number of limit orders at 1.1301 (ask) = 10 contracts
    Number of limit orders at 1.1302 (ask) = 5 contracts
    Number of limit orders at 1.1303 (ask) = 30 contracts

    You buy 20 contracts at 1.1300, You are going to move the market to 1.1302.
    Simples likes this.
  4. Metamega


    I don't trade futures myself but I would have to think the spot market would have an influence since currency futures are a derivative of an underlying.
  5. CannonTrading_Ilan

    CannonTrading_Ilan Sponsor

    Order size can push market for a brief moment if LARGE enough, which depends on the market you trade. in the case of the Euro, during active trading times, 20 lot wont do anything to the market. Large orders usually "hide" themselves with iceberg orders. many things influence the futures markets like most other trading instruments. technicals, supply/demand, price action, news, the underlying asset ( SPOT euro price) and much more. You can try a demo and observe the DOM , chart and price action to get a feel.
    bloom davies likes this.
  6. Awesome thanks guys. I've been using the tt Webtrader and I like it.

    Another question.

    Say I bought a 20 lot at 1.12500 and set my stop market at 1.12300 . If the market moves to my stop . Is it possible that my entire 20 lot stop won't be filled at 1.12300 and get me out? and the market continues to move lower with me in the the position
  7. CannonTrading_Ilan

    CannonTrading_Ilan Sponsor

    Once triggered the stop becomes market and you should be out of all 20 as long as the market still trading ( not closed, limit down etc.).
  8. Awesome thank you vm!
    CannonTrading_Ilan likes this.
  9. Sig


    Maybe, but it's also very likely that there's lots of volume behind that 10 and they're only showing 10. In other words, I've found it very common to fill a 100 contract limit order at 1.1301 with the order book shown. The only way to know is to place the order.
  10. carrer


    It's not guaranteed. I will only be filled only when there are enough (bids). If there are no bids or not enough bids, the price will move lower and your stop will not be filled at 1.12300.
    #10     Sep 26, 2016
    CannonTrading_Ilan likes this.