Trading EURUSD : Forex
i have no current pending orders.
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Scenario #1:
BID 1.39395 10,000,000 | ASK 1.39405 10,000,000
If i place a new bid with 5,000,000 quantity at 1.39405, what happens next in the Time and Sales; will the bid rise to 1.39405 before getting executed?
RESULT A) BID 1.39405 5,000,000 ASK 1.39405 10,000,00
OR, will the very next tick in the Time and Sales show the following:
RESULT B) BID 1.39395 10,000,000 ASK 1.39405 5,000,000
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Scenario #2:
BID 1.4049 10,000,000 | ASK 1.4050 10,000,000
Similar question as scenario #1 but just for clarification using slightly different example.
Lets say i put in a bid of 2,000,000 quantity at 1.4051. What happens?
RESULT A) BID 1.4051 2,000,000 ASK 1.4050 10,000,00
There is arbitrage above, is it allowed to happen in this particular market?
OR, will the very next tick in the Time and Sales show the following:
RESULT B) BID 1.4049 10,000,000 ASK 1.4050 8,000,000
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Scenario #3:
BID 1.4100 10,000,000 | ASK 1.4101 10,000,000
If i place a buy at market order for 3,000,000 quantity, what does the very next tick show? Similar to the question above, does the bid rise to 1.4101, or is just 3M taken out immediately?
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Trying to gain insight here on how the Time and Sales is recorded in the Forex market. If the market data source makes a difference, I am using IB. Please do not provide any assumptions, but rather only respond if you are 100% certain of the outcomes based on experience.
Thanks
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