1

I received negative feedback in the form of downvotes and comments, but I improved the question with the critique I got from the comments.

After I improved the question, it got back to a neutral score. Shortly after that it was put on hold.

Since I'm still interested in the topic:

  • How can I improve the question?
  • Where is it that it does not meet the standards of this site?

Especially now after working in the critique and removing the assumptions. There are even concrete examples, which further narrow down the question.

I could remove the last 2 bullet points and put them in a paragraph prefixed with 'i.e.' as explanation. Other than that, I see no room for improvement.


Link to (my) question

Impact of order volume on reception by the market

Content

This question is about the main differences, when placing high and low volume orders (high and low are hereby relative to the market size and the other placed orders) with respect to volatile markets (ethereum, bitcoin).

The questions I'm interested in are:

  • What impact does the volume of orders have on how they are received by the market?
  • Are 5 orders of 10,000 shares each always identical in impact to 1 order of 50,000 shares?
  • Are there times when it could be better to enter multiple small orders than a single large one?
6

I think the issue with your question is that you're asking for a someone's experience to be presented to you as a fact.

Markets are markets. Markets are just a culmination of many, many players and there will always be new paradigms, there will always be some market inefficiency for someone to profit from. Different markets respond to different inputs in different ways and those responses will not be constant. Different exchanges (BTC and otherwise) may batch order volumes in different ways and different traders attached to each exchange may have different strategies to responding to various order volumes. These dynamics may or may not translate to the NYSE or IEX or any other exchange or security and will probably change over time.

The market is some other person or machine responding to market inputs. Is a volume of 50k different than five orders for 10k? Maybe, depending on the exchange it might be displayed the exact same way, and depending on every other market participant at the time the reaction may be different or the same.

What impact does the volume of orders have on how they are received by the market?

It depends on the market participants at the time.

Are 5 orders of 10,000 shares each always identical in impact to 1 order of 50,000 shares?

It depends on how the exchange displays orders and the market participants at the time.

Are there times when it could be better to enter multiple small orders than a single large one?

Probably, yes.

You could improve the question by asking "Does XYZ exchange batch all orders at a specified price and display them as a single volume?" And we'd probably all vote to close because you should ask XYZ exchange. Unfortunately, this question just isn't a fit because no one can answer your question with anything more than their anecdotal experience.

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