Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

AWOL

A Question About So Called "volume" and Forex

Recommended Posts

Hello everyone,

 

Great forum , i wish i had found this place a long time ago...

 

I have a question and as lacking in wisdom as it may be i will ask anyway.

 

I understand all the talk about how volume is non existent in forex and tick volume is pointless due to there not being a centralized exchange but my question is as follows.

 

If the volume i see on a chart is not "real" volume then how do i know that the price i am seeing is also not the real price.

 

How can all of us see the same price no matter where we are in the world but none of us can see the volume.

 

How can every broker manage to correlate the price but not the volume ?

Share this post


Link to post
Share on other sites
  AWOL said:

 

How can every broker manage to correlate the price but not the volume ?

 

welcome to this forum, hope that you will enjoy your stay here.

 

to your question

they cant

 

fx is tradet at socalled bucketshops as it doesnt trade on any exchange

like a stock or future does. they do try to keep price correlated

you may feel free to open several demo-accounts at random forex brokers

and you will notice differences in price at all times

 

while broker a. will have a 1,5030 quote for eur/usd broker b. will have a 1,5034 quote

and broker c. 1,5028

 

if volume plays a part of your strategy try obtain it from their futures, for eur/usd this would be symbol 6E

Share this post


Link to post
Share on other sites

There is more truth in a bucketshops (or anyones) price than the completely unreal volume.

 

Why? Arbitrage. If the price is too far from the "agreed" price too often then a player can buy the low price and sell the high price and then close both positions when the prices get closer together. So price variations are short and calculated to make the profit gained higher than the risk of your customers arbing you.

Share this post


Link to post
Share on other sites

Hallo flyingdutchmen, G'day kiwi,

 

Thanks for the replies and i agree about the bucketshops and variable prices between brokers.

 

As for volume i have never ever used it in forex but after listening to Tom Williams i wanted to clarify my original thoughts...so thanks for that.

 

The other reason i ask is because my best friend is a senior broker with one of the largest firms in the UK and we have had some great conversations on so called "volume" in forex .... he also says that the majority of succesful people who take the most money from them use EA's.

 

I look forward to contributing here.

Edited by AWOL

Share this post


Link to post
Share on other sites

Some random comments of fx price and volume feeds…

 

The Currenex price feed can be considered the reference feed. It is just slightly less reactive ie Gain, etc feeds will on sparse occasions overshoot and/or vacillate more for a few seconds. In some pairs, it is still possible to pick up a few pip arbitraging the two feeds (with automation and must wait for a counter arb opportunity for the out ) but the net is negligible after slippage and spread/commissions

 

Up until recently Currenex volume correlated well with / could be attributed to bb/banks and Gain/sweatshop volume feeds correlated well with / could be attributed to the ‘small’ players… but Currenex has recently 'corrupted' itself with mini’s

 

TickCount ‘volume’ patterns will be out of synch with Real volume patterns at times.

And, it should be noted, at times the TickCount ‘volume’ patterns can be more accurate than Real volume patterns…

And if the peeps realized how correlated slope change patterns were to volume patterns, (particularily for automation) they wouldn’t be so enamored with (either kind of) volume feeds in fx or fx futures..

 

(Welcome, and how long have you been) AWOL,

re “we have had some great conversations on so called "volume" in forex”

Like what?

Share this post


Link to post
Share on other sites
  AWOL said:

If the volume i see on a chart is not "real" volume then how do i know that the price i am seeing is also not the real price.

 

 

The short answer is you don't :) As there is no centralised exchange different participants can be conducting trades at different prices. Of course if things get out of line arbitrage opportunitiues would exist so things would be brought into line fairly quickly.

 

I see other people have already said this but as I have typed it already I may as well post.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 31st March 2025.   Trump Confirms Tariffs on All Countries, Sending Stocks Lower.   The NASDAQ continues to trade lower due to the US confirming the latest tariffs will be on all countries. In addition to this, bearish volatility also is largely due to the higher inflation data from Friday. The NASDAQ declines to its lowest price since September 11th 2024. Core PCE Price Index - Inflation Increases Again! The PCE Price Index read 2.5% aligning with expert forecasts not triggering any alarm bells. However, the Core PCE Price Index rose from 0.3% to 0.4% MoM and from 2.7% to 2.8% YoY, signalling growing inflationary pressure. This increases the likelihood that the Federal Reserve will maintain elevated interest rates for an extended period. The NASDAQ fell 2.60% due to the higher inflation reading which is known to pressure the stock market due to pressure on consumer demand and a more hawkish Federal Reserve. Boston Fed President Susan Collins recently commented that tariffs could drive up inflation, though the long-term impact remains uncertain. She told journalists that a short-term spike is the most probable outcome but believes the current pause in monetary policy adjustments is appropriate given the prevailing uncertainties. Although, certain investment banks such as JP Morgan actually believe the Federal Reserve will be forced into cutting rates. This is due to expectations that the economy will struggle under the new trade policy. For example, JP Morgan expects the Federal Reserve to delay rate cuts but will quickly cut towards the end of 2025. Market Risk Appetite Takes a Hit! A big factor for the day is the drop in the risk appetite of investors. This can be seen from the VIX which is up almost 6%, Gold which is trading 1.30% higher and the Japanese Yen which is the day’s best performing currency. Most safe haven assets, bar the US Dollar, increase in value. It is also worth noting that all indices are decreasing in value during this morning's Asian session with the Nikkei225 and NASDAQ witnessing the strongest decline. Previously the stock market rose in value as investors heard rumours that tariffs would only be on certain countries. This bullish swing occurred between March 14th and 25th. Over the weekend, President Donald Trump indicated that the upcoming tariffs would apply to all countries, not just those with the largest trade imbalances with the US. NASDAQ - Technical Analysis In terms of technical analysis, the NASDAQ continues to obtain indications that sellers control the price action. The price opens on a bearish price gap measuring 0.30% and trades below all Moving Averages on all timeframes. The NASDAQ also trades below the VWAP and almost 100% of the most influential components (stocks) are declining in value.     The next significant support level is at $18,313, and the resistance level stands at $20,367.95. Key Takeaway Points: NASDAQ falls to its lowest since September 2024 as the US confirms tariffs on all countries, adding to inflation concerns. Core PCE inflation rises to 0.4% MoM and 2.8% YoY, increasing the likelihood of prolonged high interest rates. Investor risk appetite drops as VIX jumps 6%, gold gains 1.3%, and safe-haven assets outperform. NASDAQ shows strong bearish momentum, trading below key technical levels with support at $18,313 and resistance at $20,367.95. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • PM Philip Morris stock, top of range breakout at https://stockconsultant.com/?PM
    • EXC Exelon stock, nice range breakout at https://stockconsultant.com/?EXC
    • UTZ Utz Brands stock, watch for a bottom breakout at https://stockconsultant.com/?UTZ
    • FL Foot Locker stock, nice breakdown follow through at https://stockconsultant.com/?FL
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.