For the Toast and others ~ Currencies&Volume

[MoonRocket]

It has been said that there is no meaningful volume available for forex.
Although I get volume via the market maker, I'm supposing they get it from a futures exchange?
Does this volume correlate proportionately with all the currency traded every where at the same moment?
Is the Jigsaw Trading software effective with forex?
Thanks.

 

[wackypete2]

Volume in spot forex from your broker is called tick volume. It's a count of the number of price changes (ie: tick changes) and NOT the number of contracts traded. It's usefulness is limited but GENERALLY, the more contractes traded the higher the tick count will be. If you use or need actual volume as an integral part of you method then this would not suffice.

Also, IMO only, a 4 digit broker's tick volume will more accurately reflect the true volume than a 5 digit broker.

Peter

 

[scose-no-doubt]

Gammajammer once said that there is volume for forex but they pretend there isn't

 

[DionysusToast]

It has been said that there is no meaningful volume available for forex.
Although I get volume via the market maker, I'm supposing they get it from a futures exchange?
Does this volume correlate proportionately with all the currency traded every where at the same moment?
Is the Jigsaw Trading software effective with forex?
Thanks.

Not with a Forex Feed.

For newbies to tape reading, one of the ways to get into it low cost is to watch the DOM/T&S for the 6E but trade the EUR/USD small size.

Still - that's really a short term bridge to futures trading.

So - in terms of all the data feeds I'm aware of, the Jigsaw software would be as useful as tits on a bull for Forex.

It's stocks 'n futures really.

 

[wackypete2]

Gammajammer once said that there is volume for forex but they pretend there isn't

Of course there's volume for forex. Every broker, dealer, bank, etc... knows how many contracts trade and all the stats, but retail traders aren't privy.

Peter

 

[DionysusToast]

Let's face it - with the amount of transactions in forex - last thing you'd actually want is a Time & Sales feed.

You'd need a Cray to process it...

 

[wackypete2]

Let's face it - with the amount of transactions in forex - last thing you'd actually want is a Time & Sales feed.

You'd need a Cray to process it...

I have one between my shoulders. Unfortunately it has a lot of down time

Peter

 

[DionysusToast]

When is a forex transaction actually recorded though?

I had HSBC call me today about a transfer of USD to Thailand. It's Tuesday today and I'd put the transfer instructions into the online banking system on Friday. That's some latency.

What about when people pay their invoices to others overseas? There's thousands of banks but as was stated by Pete on another thread - there's just a few making the market.

The whole thing seems quite 'untimely' to me.

 

[scose-no-doubt]

You and most small businesses are dealing with the bank in it's commercial capacity. It's then down to the banks to sort their own currency requirements. In the case of companies, the treasury department manages FX exposure and requests hedges and exchanges as they deem appropriate.

 

[ZEN archer]

It has been said that there is no meaningful volume available for forex.
Although I get volume via the market maker, I'm supposing they get it from a futures exchange?
Does this volume correlate proportionately with all the currency traded every where at the same moment?
Is the Jigsaw Trading software effective with forex?
Thanks.

There is no central marketplace for FX to record all the volume information. Only thing available for cash FX is the number of transactions as Wackypete2 pointed.

 

[scose-no-doubt]

Gamma Jammer seems to think that "they" can have volume figures and in his words "it works".

 

[ZEN archer]

Maybe in the futures market, but there are few problems there. The data is delayed by one day. There is real time tick volume which shows how many times a level was traded, but no real time contract size volume - the exchanges keep this info till the following day.

 

[wackypete2]

Gamma Jammer seems to think that "they" can have volume figures and in his words "it works".

Not sure what it is you are asking him, but if you are a retail spot forex trader there is no real volume information available. Anything you could possibly get is some sort of a volume derivative. GJ works a forex trading desk, right? He has or can get true volume across all major banks. We cannot.

Peter

 

[scose-no-doubt]

what I meant was that the information is there s'all.

 

[wackypete2]

what I meant was that the information is there s'all.

But not anywhere "there" where we can get it, so what's the point?. I already agreed volume exists, of course it does, just not for retail traders.
I'm sure GJ has vast knowledge about his profession, but you are trying to apply it to a retail venue and it doesn't work.

Peter

 

[scose-no-doubt]

you are trying to apply it to a retail venue and it doesn't work.

am i?

 

[MoonRocket]

Thanks guys. New to forex but I now understand it better.

Volume in spot forex from your broker is called tick volume. It's a count of the number of price changes (ie: tick changes) and NOT the number of contracts traded. It's usefulness is limited but GENERALLY, the more contractes traded the higher the tick count will be. .....

Also, IMO only, a 4 digit broker's tick volume will more accurately reflect the true volume than a 5 digit broker.

Peter

Thanks Peter.
Have been using it thinking it was volume and I found it was effective.
I appreciate the clarification, hopefully this gives me a little more insight.