When does your BUY or Sell order affect the market

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elderwise
Posts: 251
Joined: Fri Jul 22, 2016 10:27 am

When does your BUY or Sell order affect the market

Post by elderwise » Thu Feb 13, 2020 12:42 pm

I always wonder when does a buy or sell order for a broadly traded ETF or stock, starts to affect the market like djia or Nasdaq?

100K, 200K, 1MM?

Does anyone have any answers with data backing it?

MotoTrojan
Posts: 9150
Joined: Wed Feb 01, 2017 8:39 pm

Re: When does your BUY or Sell order affect the market

Post by MotoTrojan » Thu Feb 13, 2020 12:56 pm

A better metric would be % of daily average volume. Very interesting question though. I would think the most impactful would be to find a stock that is a large portion of a sector/index (perhaps Apple or Microsoft) and trade enough to drive it's price, and perhaps trigger some bots to buy/sell the overall market based on that move, compounding the change. For a fixed dollar amount you may have more luck trading a smaller firm (but still a decent part of the overall market) to get a bigger initial move in the underlying stock.

$500M buy in Apple will move the market a lot more than a $500M buy in the S&P500.

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