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Resolved Question
How many standard lots can the most liquid currency pairs absorb?
Which pairs are the most liquid and how many do you think these markets can absorb without much slippage? Do some people trade 50 standard lots? Thanks.
over 2 years ago
Best Answer - Chosen by Voters
The most liquid majors that are traded are normally the EUR/USD, USD/JPY and GBP/USD. Spreads on these pairs are normally the tightest. Of course, when there is a lot of movement in the markets (for example, when economic reports are being released), there is a chance for slippage. Just be careful when you are trading and be aware of what economic reports are being released. You may even want to avoid trading during these times to avoid being whipsawed.
over 2 years ago
Answers (2)
Anything with USD in it will supply sufficient liquidity. Slippage usually isn't a problem unless there's a major news release. Yes, some people trade 50 standard lots, but they have multi million dollar accounts. Usually banks trade in this volume.
over 2 years ago
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Go demo on ECN brokers and you can see level 2 market depth. On MBT, I see 1 million units (10 lots) of EURUSD (most liquid pair) get traded at least every second on average, and I've seen orders as big as 5 or 6 million units get filled as well. FX is huge and super liquid.
That's just MBT. Imagine how big the institutions trade with each other everyday.
The 8 majors are the most liquid, so I would stick to those if you trade frequently.
over 2 years ago
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