How Would a Forex Trader Measure Volume

The forex market is $4 trillion market. If volume is a technical indicator that one uses to measure the stock market, how does one apply the same indicator to the forex market?…

The forex market is also volume based as the stock market… as its traded globally so the size of the market is way bigger then any other stock market of the world… the $4 tn represents the daily transaction or the buying selling of currency in $ terms… now you can simply use the volume indicator in the software available to trade forex like the MT4.

However, that method is really not that helpful…


How to Measure Forex Market Volume

Volume is actually available from most forex brokers and is derived from your own brokers data stream.

While those numbers do not even begin to report the total worldwide market volume, they still can be partially meaningful and helpful as they represent a relatable or proportional measure of the total volume being traded worldwide.

As forex market is not centralized, you can’t get the real total traded volume. It’s impossible to get the total traded volume if that is what you are asking.

If you want to calculate relational volume (todays volume of EURUSD compared to for example average volume or volume of GBPUSD), you can use currency future volumes but they will not give you total view.


To measure raw volume in Forex is unfortunately nigh on impossible

There is no central system and without this, there is no truly accurate method of measuring true volume.

What Forex traders can and do use however, are volatility indicators such as Bollinger Bands and ATR to measure market direction and to try to predict trends.

Also there are other volume indicators such as “Accumulation Distribution/AD” index, and the Elder Force Index amongst others, which traders will use to look for divergences between price and volume to see whether the currencies movement is supported by the volume indicator.

A shift in sentiment from Buyers to Sellers (or vice versa) can be a hint in your trading. However, that method is really not that helpful.

And since there is no central clearing house for all currency trades as other answers have indicated here, you will not get a reported total.


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