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Is there a term for when a big player buys/sells so much volume of an asset (stock, currency, gold, etc.) that it changes the price? Is there a name for this type of player?

I want to know the searchable term so I can read literature on this.

  • They move the market - so not much help for Google – user151019 Feb 18 '18 at 16:36
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    The question is fine, but I've edited out the Google reference. See 15 Product Trademarks That Have Become Victims Of Genericization – JTP - Apologise to Monica Feb 18 '18 at 17:15
  • You just call the party a "market mover". {You call them a market mover because they have ................ wait for it :) ............ moved the market.} Also, very simply, you might say they "took a big (/huge, etc) position". Note, you may be thinking of the phrase "corner the market..." – Fattie Feb 19 '18 at 15:29
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Here are two examples of people referring to such big players as "market movers":

https://forums.babypips.com/t/what-is-the-difference-between-a-market-maker-and-a-market-mover/5123

A market mover is one of two things:

1) A trader or institution which trades in size sufficient enough size to push the market bid/offer around.

http://socialize.morningstar.com/NewSocialize/forums/t/157577.aspx

Who are the major market movers (MM's)? Jeremy Siegel shows on page 249 of "Stocks for the long Run" that a major class of MM's are the Index arbitragers. EG Each day the constant movement between the upper and lower arbitrage limits drives the prices on the DJIA.

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    Why is this downvoted? Isn't it a word for word, textbook answer to the question? – WakeDemons3 Feb 18 '18 at 17:38
  • We do have a post on Why is voting important? but it comes with no requirement to explain the actual reason for an individual's vote. A member is welcome to offer it, or not, as s/he chooses. I will ask you - Why didn't you offer an upvote? – JTP - Apologise to Monica Feb 18 '18 at 18:48
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    Answer #1 is word salad. If there are 400 shares at the ask and I buy them AND no one comes in at that price, the ask prices increases. Am I a market mover??? Anyone who buys enough shares to make price move is simply a BUYER (or SELLER). #2 is valid but has nothing to do with the OP's question. – Bob Baerker Feb 18 '18 at 21:23
  • Bob - and that’s why you or other member offered a DV to this answer. When I search “market mover” I get lists of stocks that had large moves that day, not what OP was expecting. – JTP - Apologise to Monica Feb 18 '18 at 21:58
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    @JoeTaxpayer what, then, do you call a person/institution who's transaction is such a high volume that it moves the market for that stock or bond? In this (socialize.morningstar.com/NewSocialize/forums/t/157577.aspx) comment is "*Who are the major market movers (MM's)? Jeremy Siegel shows on page 249 of "Stocks for the long Run" that a major class of MM's are the Index arbitragers. EG Each day the constant movement between the upper and lower arbitrage limits drives the prices on the DJIA. *" Those index arbitragers seem to be companies that buy and sell stock. – RonJohn Feb 18 '18 at 22:18
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If you are seeking a more unofficial name, I have heard the term Whale - especially in conjunction with digital currency.

https://news.bitcoin.com/bitcoin-whales-and-how-they-make-market-waves/

What is a Bitcoin Whale?

If you trade bitcoins or altcoins, you’ve probably heard the term “whale” before as the name is used to describe big cryptocurrency holders. The term is used this way because whales are the biggest creatures in the ocean and they can overpower smaller fish with their large size. Bitcoin whales are looked at similarly because their extensive holdings can affect large schools of smaller traders with just a few successful trading methods. Additionally the smaller the market and less liquidity means whales can devastate smaller altcoin markets way more easily than bitcoin. We also assume that Satoshi Nakamoto may be the biggest whale of all as the creator allegedly owns 1 million bitcoins.

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There are a few terms that might be applicable here.

"Market Mover" is a term applied to someone who buys/sells significant positions that blast through several levels of buyers/sellers and, thus, moving the market. This will vary from company-to-company depending upon the liquidity in the market.

When a massive position has been taken, the activity is called cornering the market.

Some stock markets have mandatory reporting requirements for any "significant shareholder" or "substantial shareholder" that owns more than a certain percentage of a company. In Australia, for listed companies, anybody with 5% of a company must disclose within 2 business days of acquiring that interest and also provide notifications of any change of 1% or more. In USA, major shareholdings require a Schedule 13D disclosure within 10 days to be filed with the SEC at the 5% beneficial ownershp and 1% changes.

  • That is the ultimate version of "big player buys/sells so much volume of an asset (stock, currency, gold, etc.) that it changes the price". However, there's a lot of space between no effect and cornering the market. – RonJohn Feb 19 '18 at 6:35

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