Just curious if someone can help me out or point me in the right direction. I was having a debate with a few friends and need a mathematical equation (model) to prove the below question. I think it has something to do with volume and liquidly but I’m not sure how to calculate it mathematically.
Question:
Simple said if you purchased into the prevailing trend how many contracts would you need to purchase in a lot to help push, move, coax the price? I’m not saying moving the market or causing a huge price change I’m just wondering what it takes to cause a minor price change? For example using the E-mini Russell say you enter the market long at 704.3 how many contracts would you need to purchase to move the market 0.1 or 0.2 ticks above 704.3 to 704.4-704.6 for a short period of time say seconds to a minute? 500 contracts? 5000 contracts? 50,000 contracts at a time?
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