How a trade influence the forex market?
How a trade influence the forex market?
Loading saved threads...
Bertrand125 · External communityPost link
External question — Quantitative Finance Stack Exchange
Author: Bertrand125
Original post: https://quant.stackexchange.com/questions/74170
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
I'm trying to program a basic forex simulator in order to test strategies. But I don't know how is influenced the market when a position is opened or closed.
For example, if I open a 10 000 000 € BUY order on EURUSD, I think It will decrease the quote of the EURUSD value. But maybe I'm wrong, and I don't know how much it will decrease or increase the quote.
I set my forex simulator to decrease the quote of EURUSD of 0.5 points (0.05 pips) for each opening of a BUY order that have a size of 10 000 000 €, and to increase the quote of 0.5 points at the close of this order. I make a computation proportional to this value for smaller and larger orders.
So, is there a way to know or approximate de quote deviation induced by the opening or the close of an order, in function of its size and eventually other parameters ?
Quote
Report
Post Reply
Quoted from Forex.com.bd-Editorial External question — Quantitative Finance Stack Exchange Author: Bertrand125 Source score (net votes, not local likes): 0 Original post: https://quant.stackexchange.com/questions/74170 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I'm trying to program a basic forex simulator in order to test strategies. But I don't know how is influenced the market when a position is opened or closed. For example, if I open a 10 000 000 € BUY order on EURUSD, I think It will decrease the quote of the EURUSD value. But maybe I'm wrong, and I don't know how much it will decrease or increase the quote. I set my forex simulator to decrease the quote of EURUSD of 0.5 points (0.05 pips) for each opening of a BUY order that have a size of 10 000 000 €, and to increase the quote of 0.5 points at the close of this order. I make a computation proportional to this value for smaller and larger orders. So, is there a way to know or approximate de quote deviation induced by the opening or the close of an order, in function of its size and eventually other parameters ?
Checking account access…