When Does One Have An Affect

Discussion in 'Trading' started by bootize, Jan 15, 2007.

  1. bootize



    This might be a tough question to answer, but I thought I'd ask anyway.

    Does anyone have a gauge as to what point an individual would have a noticeable affect on the price of the market/instrument they are taking a position in?

    For example...

    Stock XYZ trades $100,000,000 in volume on a single day (volume X price).

    How big of a position would I have to take in order to actually affect the price significantly enough to make it difficult to enter the whole position at, or very near, the last ticked price?

    1/10th of the daily volume dollars?

    What do you think? Hopefully this question makes sense. :)

  2. I dunno there are some equations for this

    Ill post them later if i feel like it
  3. Your position size would have to consistently exceed the quantity on the bid & offer.