Thread: trading with 10 millions VS 1 million ??

Does anyone know if there is difference on FX when you trade news with 10 millions or with 1 million. I mean if u have 100k in account and utilize 10:1 leverage u operate with 1 million....trades are executed immediately. . .all OK.

So if you utilize leverage 100:1 than u operate with 10 million. Are the trades executed Or it should be around speed?

Originally Posted by ;

does anyone know whether there is difference on forex when you exchange news with 10 millions or with 1 million. I mean when u have 100k into account and utilize 10:1 leverage u operate with 1 million....trades are implemented immediately. . .all OK.

So in the event that you utilize leverage 100:1 than u operate with 10 million. Are the trades executed Or it ought to be around same speed?

It's only a matter of how many 0's are attached, thereby effecting the ammount for every pip. Also, your leverage is not determined by the brokers leverage recall that, if you are trading 1:100 true stop.

Originally Posted by ;

therefore in case you utilize leverage 100:1 than u operate with 10 million. Are the transactions executed slower?? Or it should be around same rate?

The larger the order, the poorer the implementation. The very big players sometimes need a few weeks to acquire their full position, as they'd move the market against themselves if they did it all at once.

Originally Posted by ;

the bigger the order, the weaker the execution. The players require a couple weeks to obtain their full position, as they would move the market against themselves if they did it at once.

Really? I thought it was instantaneous out of retail brokers. That would make sense for interbank however...

Originally Posted by ;

so in the event that you utilize leverage 100:1 than operate with 10 million. Are the transactions executed slower?? Or it should be around speed?

On an ECNexactly the same speed, order processed instantaneously. On a dealing desk, who knows.

IB's ECN typically has 10-20 million around the inside spread for those majors, occasionally greater. An order for 200 lots would process without delay or affecting price. There are ECNs which can accommodate larger size.

Originally Posted by ;

the bigger the order, the poorer the implementation. The really big players sometimes require a couple weeks to obtain their entire position, as they'd move the market against themselves when they did it.

I was thinking the reverse would occur, why would it move ?

What do you believe about TraderKGB's remark that ECNs' performance aren't effected by orders? I would have to disagree with him.

Can you recommend chunking substantial orders into miniature ones? I read someplace that MBTrading advocated this.... It may apply to becoming filled faster with others too....

Due Merlin.

Originally Posted by ;

the bigger the order, the weaker the implementation. The really big players occasionally require a few weeks to obtain their full position, as they would move the market against themselves when they did it.

Originally Posted by ;

I was thinking the reverse would happen, why would it move against them?

As a buyer wants to establish his position in the lowest possible price, so when he's buying large quickly, he will end up buying his entire position at much higher prices instead of amassing his entire position slowly at more attractive prices. . .So He's moving the market against his intention not against his current position...


Thanks,

Nader

Originally Posted by ;

I was thinking the opposite would happen, why would it go ?

Yeah sorry I wasnt clear on this... narafa gave the answer above - the buyer of the situation would like to obtain the cheapest possible price. After the buyer starts buying, the price will go up, making it more expensive to add to the position. The worst part is, the price is artificially inflated as a result of the buyer herself. So yes, the motion is in favor of the current position, but the buyer doesnt want it to happen until AFTER the position on.

Originally Posted by ;

Can you recommend chunking substantial orders into miniature ones?

Yes, always. Even if you're trading with a account, its good practice to split your orders . Not only can it spread out the execution risk (eg your broker screwing a clerical mistake), but it also gives you the best execution.