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Why is forex volume based on ticks and not real volume?


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  #1 (permalink)
 johnEdweeno 
brisbane queensland australia
 
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Is it because ECNs/banks wish to be less transparent? Or is there some other reason?


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 tr8er 
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Forex isn't regulated and there is no exchange, so nobody knows the real volume, so you just will get the volume of your brokers clients or another estimate.


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 johnEdweeno 
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tr8er View Post
Forex isn't regulated and there is no exchange, so nobody knows the real volume, so you just will get the volume of your brokers clients or another estimate.


what's this then?
https://www.myfxbook.com/en/forex-broker-volume


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 Teduardo 
Kingscliff, Australia
 
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My inderstanding, and im no expert, is broker "volume" is usually provided as ticks (# of price changes), not actualy volume. As Forex is not traded thru a central exchange, each broker posts own tick data based on the transcations they execute for their clients. A study some years ago found the correlation between ticks and volume is ~93% correlated. See attached. Not sure if theres a service that aggregates the tick data to get a larger sample?


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Why is forex volume based on ticks and not real volume?-tickfxvolume.pdf  
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 RDK91 
Antwerp
 
Posts: 455 since Jun 2016


tr8er View Post
Forex isn't regulated and there is no exchange, so nobody knows the real volume, so you just will get the volume of your brokers clients or another estimate.

If they are honest that is.

Since Forex isn't regulated each broker can say whatever they want regarding volume, spread, bid/ask price, who takes the other side of your trade, ...


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 matthew28 
United Kingdom
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Read to the bottom of the page.
It is a sample of live accounts (because as others have said, there is no centralised exchange). It think it could be interesting, if accurate and representative, for choosing a broker so you can see which trade more volume than others.


You do not win as a trader, you just get to play again the next day. If that game doesn’t appeal to you then you should not trade. Gary Norden
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