Liquidity / Lot Size

Discussion in 'Order Execution' started by jeol, Feb 19, 2007.

  1. jeol

    jeol

    Hi,

    Most webpages state that the Forex market is the most liquid with over 1 trillion USD/day...that´s probably true but it doesn´t give me any idea of how the liquidity is ´spread´ over the prices of a given time period (day)...

    Is there any way to measure this? How much money can theoretically be bought or sold at a given quote (´normal´ conditions) before the price will change a pip or two? (theoretical question)?. Is it more a question of your broker´s ability rapidly to find buyers/sellers for you?

    Thanks a lot ;-p
     
  2. Don't quote me on this, as I have only treaded lightly in forex. I believe that I've read on a brokers website that they say you will get filled if you keep your order under 10 large lots (1 mil) . With MB trading you can see how many lots are on the bid/ask, so you can get a better idea of how much liquidity is there.