#8 Large Orders and Price Movement

What Is a Large Order?​

A large order is an order size that is much bigger than normal for that market and time.

It can be:

• A large market order
• A large limit order
• A series of orders acting like one big order

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Large Market Orders​

Large market orders are aggressive.

• Large buy market order → hits the ask
• Large sell market order → hits the bid

What happens:

• Multiple price levels can be consumed
• Price can move many ticks very fast

Example:

• Ask has 200 contracts per level
• A buy market order of 1,000 hits the ask
• Several ask levels get filled
• Price jumps up quickly

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Large Limit Orders​

Large limit orders sit in the DOM.

They can:

• Slow price
• Stop price
• Or attract more trading

Example:

• 2,000 contracts resting on the bid
• Sellers hit it repeatedly
• Price stops falling (for now)

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When Large Orders Move Price​

Large orders move price when:

• Market depth is thin
• Liquidity is low
• Orders are not absorbed

This usually results in:

• Fast movement
• Long candles
• Few trades at each price

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When Large Orders Do NOT Move Price​

Large orders do not move price when:

• Market depth is thick
• Liquidity is high
• Orders are absorbed by opposite side

This creates:

• High volume
• Little price movement

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Beginner Tip​

Never judge a large order alone.

Always consider:

• Market depth
• Volume at price
• Recent price behavior

Context decides the outcome.

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#7 Volume at Price

#9 Absorption (Basic Concept)