In any economic model, buying or selling has a direct impact in the price.
I've read about scalping and high volumes in few seconds.
My question is: how would a high volume transaction impact the price, or how much is it needed to move the price 1 pip in, say EUR/USD?
I'm watching the tick movement, and suddenly 3 pips up and down in half a second. Was this a huge transaction by some bank? Was a company sold?
I'll never move 10 lots, but if I did, would that have a direct impact or is it just a drop in the sea?
I hear the answer: Just a drop in the sea.
Now: 100 lots? 100000 lots?
Jus trying to understand about liquidity and volumes.
I've read about scalping and high volumes in few seconds.
My question is: how would a high volume transaction impact the price, or how much is it needed to move the price 1 pip in, say EUR/USD?
I'm watching the tick movement, and suddenly 3 pips up and down in half a second. Was this a huge transaction by some bank? Was a company sold?
I'll never move 10 lots, but if I did, would that have a direct impact or is it just a drop in the sea?
I hear the answer: Just a drop in the sea.
Now: 100 lots? 100000 lots?
Jus trying to understand about liquidity and volumes.