Working out what size trade the market can take

[mtrend]

Hi

I wanted to know if their is a 'loose' formula people use to work out what size trade the market can take?

Eg.

If I wanted to use a £10 tick size for instance to trade before the off & to get matched within 1 or 2 seconds approx., what market characteristics would I typically look for ?

Cheers

[Euler]

It's more a function of fill rate. If the market can take your order and you can exit your trade quickly then your stake size is about correct. But if you can't exit quickly then you are in trouble. I tend to look at the average amount matched per second.

[mtrend]

Thanks for the reply, so say the average rate per second is £25, what amount / size position would you typically expect to get filled easily ?

eg. £50, £100, £250 etc ?

Sorry just trying to apply some basic rules around this in my trading plan if possible.....


Cheers

[Euler]

About double market volume. But market volume can often run to about £1k a second, so at those values it isn't really going to be an issue.

[mtrend]

Cool, thanks for the info !