Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Forex Position Sizing - What is a "Large" Position?
What would you consider a "large" quantity for a retail Forex trader?
For example, I would consider "large" to be the point where you are only getting partial fills on your orders because of your size rather than because of market conditions such as low volume. Another way to pose this question would be to ask "What is a median position size in retail Forex?" That would give me a good idea of where I should be in terms of position sizing.
Can you help answer these questions from other members on NexusFi?
There is no volume measure tool in Forex...
Means an individual, a bank, a country can not have the power to influence most
important currency pairs - so stay away of thinking to see "where the market goes".
A sudden intervention of FED or ECB or Chinese / Japanese Central bank might get
you in trouble - as such interventions are not always to foresee.
Just a thought: better to stay with stocks and futures
GFIs1
That is not what I'm asking. I am asking at what point would you be concerned that your orders will become partially filled strictly due to size. That is independent of your risk tolerance.
For example, I think it's safe to say that if you're trading micro or mini lots, youre probably not going to have issues getting filled. However if you are putting out an order for 100 Lots, you can expect to experience partial fills until your order is consumed (if ever fully consumed). Does that make sense?
If your asking what size you can drop without issues with fills then have a look at dukascopy or another ecn and view their order book. It will depend on the market, something like eu could probably take 300 lots whereas nzd/cad might be more like 100. Obv conditions will vary.
If your a retail trader on a non ecn broker they will limit your size.
That helps! I moving up from single Lots to the 10-30 Lots range for my risk tolerance, so was trying to gain some insight about what to expect before learning the hard way. I use Gain Capital which is a market maker. Not sure if I will go with an ECN. I haven't looked into switching yet.
As a side question, what are your thoughts on ECN vs Market Maker?
