Small Orders Visible on Forex 'ECN's'

Discussion in 'Forex' started by MiamiHurricanes, Dec 9, 2008.

  1. This thread is intended to discuss the impact of small orders on forex 'ECNs'.
  2. I see two things happening with small orders on forex 'ECN's'

    1. I see a market movement start to ensue in the tick-1 minute time frame. A small order (well below $100,000 USD) is entered and the movement hesitates sometimes for minutes before the market trades that order.

    2. I see a market movement being fueled by a small order(s) and it extends as the small order(s) keep getting more aggressive.

    Both of these make no sense to me when the market makers are posting $1,000,000 USD up minimum size markets... but I am assuming there are times where participants hide their size and are using all sorts of order algorithms, etc.

    I get the sense that the market makers will back away from anything or respond accordingly to maximize their edge.