Price going to size

Discussion in 'Trading' started by WhiteOut56, Apr 17, 2010.

  1. I have often hear that Price goes to size.

    100 50.50 * 50.52 1

    I just don't understand why there wouldn't be upward bias here
  2. Maybe it was true in the 80's. There is a lot of gimicks with programs that cancel and resend orders.
    This is 2010!
  3. It should be pretty obvious why this is true:

    Big volume has to trade with big volume - if I need to move 1000 contracts, I've going to have to find some people who want to trade say hundred lots, not one at a time. Similarly, big volume moves the market. Therefore, when big volume wants to consume liquidity, it has to move the market to where a big volume of liquidity is offered.