Can a limit order move the Forex market?

[PhoenixJ]

Can a limit order move the Forex market? Or have a direct effect on a pair?
If so will it also be impactful before it's executed?

 

[Ethan.ishere]

depends on the liquidity involved with that pair, high liquidity pairs are less likely to be affected.

 

[PhoenixJ]

That's a very logical answer. Now there are certain times when the market has a very low liquidity, especially after the opening time of the market and before its closing time. Now do you think the limit orders will have effects before they are executed?

 

[Ethan.ishere]

Then again that depends on other factors like opposing orders, but sure can if there is no balance in the liquidity of the market, they can significantly affect the market prices.

 

[FXGold]

Can a limit order move the Forex market? Or have a direct effect on a pair?
If so will it also be impactful before it's executed?

A limit order by an individual trader typically doesn't move the market. However, large limit orders from institutional traders or significant numbers of limit orders at the same price level can influence market prices, particularly if these orders are visible to other traders.

 

[PhoenixJ]

Then again that depends on other factors like opposing orders, but sure can if there is no balance in the liquidity of the market, they can significantly affect the market prices.

That's an interesting factor to have in mind.

 

[PhoenixJ]

A limit order by an individual trader typically doesn't move the market. However, large limit orders from institutional traders or significant numbers of limit orders at the same price level can influence market prices, particularly if these orders are visible to other traders.

Visible where? Is there a source to finding out about such orders?

 

[FXGold]

Visible where? Is there a source to finding out about such orders?

These orders often show up in Level 2 market data. Check if your trading platform offers this feature to see these orders in action.

 

[CallahanSinclair]

Can a limit order move the Forex market? Or have a direct effect on a pair?
If so will it also be impactful before it's executed?

To impact the market, it needs to be very large, enough to shift the balance of supply and demand at that price.