Trading Forex Volume
According to a recent triennial report from the bank for international settlements (a global bank for national central banks), the average was more than $5. 1 trillion in daily forex trading volume. What trading volume can tell us. alright, if you don't know anything about volume, then let's take a look at how trading volume in stocks works first, because it is a smaller market and it is easier to explain the concepts. even though this is not about forex trading, it will give you a lot of context for the forex market, later in this post. The forex market measures volume by counting the tick movements. the logic behind this is straightforward: a) price moves up and down in ticks. b) the forex market cannot measure how many contracts are sold, but it can measure how many ticks price moves up or down in any given time frame. There is a common misconception that volume cannot be used reliably in forex trading for two reasons: firstly, there is no central exchange and therefore no...