Whats the Biggest Instant Fill Size for Institutions and Private Investors?

[achilles28]

Originally Posted by Nonpiker

If you are doing 100+ with a bank in spot or an outright foward you will have to deal on the phone from my experience. They get beat up enough on their e-commerce business. All you need is well capitalized CTA or a hedge fund who decides to deal for a half a yard plus (do a few hundred at a couple of banks) and they will get run run over at the right time.

Thanks for contributing!

To clarify, Im just a small time investor looking to expand his knowledge of the forex industry.

I don't understand some of the axioms and contractions used in your response. A few questions:

By doing 100+, are you referring to 100 million leveraged in size?

Why would instant execution for larger sizes (100 million+?) hurt market making banks if interbank liquidity during peak hours is commesurate, if not vastly bigger than 100 mil at most times? Or does 100 million? represent a general liquidity threshold where at any given time, sellers equal buyers - nescessiating requotes to buy larger amounts?

How do market making banks get beat up on their e-commerce sites?

Are you suggesting 'partnering' with a well financed hedge fund or CTA for which to route trades through to more efficiently trade big size?


Thanks very much for your help!

[achilles28]

Originally Posted by Nonpiker

I actually looked at a platform of a uk clearer that I do not typically use today and they show streaming prices for up to 100 euros.

By 100 euros, do you mean instant execution up to 100 million euro?

May I respectfully ask about your experience in the forex industry?

Sounds like you have some good experience working for or dealing with a major bank/broker?

Thanks again

[Nonpiker]

Originally Posted by achilles28

Thanks for contributing!

To clarify, Im just a small time investor looking to expand his knowledge of the forex industry.

I don't understand some of the axioms and contractions used in your response. A few questions:

By doing 100+, are you referring to 100 million leveraged in size?

Why would instant execution for larger sizes (100 million+?) hurt market making banks if interbank liquidity during peak hours is commesurate, if not vastly bigger than 100 mil at most times? Or does 100 million? represent a general liquidity threshold where at any given time, sellers equal buyers - nescessiating requotes to buy larger amounts?

How do market making banks get beat up on their e-commerce sites?

Are you suggesting 'partnering' with a well financed hedge fund or CTA for which to route trades through to more efficiently trade big size?


Thanks very much for your help!

To clarify, yes 100+ is a hundred million. It could be a leveraged spec name or it could be a real money account. The mechanics of the deal to the dealer are the same but the way and times the two trade are a lot different.

E-commerce is electronic trading to a bank. There is liquidity in fx just not when you need it. Please realize that when there are stops to be run or the market is running a bank trader will get dealt on one way. If the market is moving higher he will be selling as his customers will be buying. If he is improplerly postioned he will be getting short as the market is moving higher and painfully covering at higher prices Now imagine a cta or fund that is prime brokered and buys 100 from Bank A and another 100 from Bank B, and another from Bank C etc... Every tic is 10k to the dealer who will probably have to cover them higher. That is the basic mechanics of a fund running dealers over. They deal at multiple places at the same time for size and they move the markets and the banks eat it. This also can happen via the phone

This type of trading is not appreciated by most banks; however, if you do enough business in other areas like fixed income, equities, options, etc...they may be willing to overlook it.

My experience is I have experience at a fund that trades various products including spot fx.

I hope that helps. I wrote this half asleep so let me know if you have any questions and Ill try and clarify.