Volume: tick and real
Volume on forex shows the number of trades, not the amount of money. On an exchange it is real. Do not confuse the two.
Volume: tick and real — what it is?
Real volume is the number of contracts actually traded over a period. It exists on exchanges: futures, stocks, crypto venues.
Forex has no single centre, so real volume does not exist there. Instead the terminal shows tick volume — the number of price changes over a period.
Tick volume correlates with activity, but it is not the same thing. Treating it as real volume is a common and expensive mistake.
Volume: tick and real — how it is built?
Volume is not used in our markup rules. It stays a reference figure: useful for telling an active stretch from a sluggish one, but it is not part of any entry decision.
Volume: tick and real — common mistakes
Building a strategy on the volume shown by a forex terminal.
Comparing volumes across brokers: each has its own quote feed.
Treating a volume spike as confirmation of direction. Spikes also happen on liquidity sweeps.
Carrying volume-analysis techniques over from exchanges to the over-the-counter market without adjustment.
Related to
Glossary
- volume
- the number of trades or contracts in a period.
- exchange
- a venue for trading cryptocurrencies.
- futures
- a contract to buy or sell an asset in the future at an agreed price.
- forex
- the over-the-counter currency exchange market.
- tick volume
- the number of price changes in a period. On forex it stands in for real volume, which does not exist there.
- quote
- the current price of an instrument.