I see, and what exactly do you think the broker does after he's used up what you say is $50 to $100m, stop taking orders, lol. What do you think the broker uses his liquidity providers for, playing tiddlywinks with! The marketmaker I trade with will usually fill orders up to 10m instantly, above that I need to get a quote. Why do you think that is? crgarcia you've seriously lost the plot (assuming you had it to lose in the first place!)
Wait a sec, that doesn't make much sense. At most it would have moved maybe 250 pips, right? $700,000/250pips=$2800 per pip I am assuming he was in front of the comp when he had to take his wife to the hospital, no? And wouldn't he know of a major news event coming up that day? If so, why in the world wouldn't he have just immediately closed out? You sure those details he gave you are correct? That is a TON of money percentage wise and real money wise to lose just because you don't have a stop.
Who says futures are less liquid than bucketshops? Let's take the CME EC contract, on Friday it traded 246,508 contracts http://www2.barchart.com/dfutpage.a...tion=currencies Contracts control 125,000 Euros, let's suppose an average price of 1.5400. That is $47,452,790,000 traded friday March 21 $47 BILLION! ******************************* Yes ,CME reflected full liquidity,but access is through brokers ,which are not pure agent ( have proprietary account and income from proprietary trading) Future broker*s alsov not well capitalized forex broker*s ,alsov pure agent ,as hotspotfx reflected only fraction of liquidity .
Im a little consiered about the bucketing at forex so i got this from the office. Hope it helps its from bloomberg.
But how is that 47 billion distributed over the day, my spot broker accepts trades up to 10 million ANYTIME I want to make a trade (no exceptions). What good will the 47 million do me if I do not exceed 10 million in trade size? And while you are at it, why don't you quote the liquidity of some other pairs traded at the CME. Could you give the volume for popular pairs like USD/CAD, NZD/USD and GBP/JPY? On each of these pairs, I have 10 million volume ANYTIME I place a trade.