Originally Posted by Haank
FXCM is one of the biggest retail forex brokers and I think they reported doing about $450bln in volume for the month of December, and something over $1trln for Q4. Compare that to an estimated daily average volume for the market of $4trln and you get an idea of how insignificant retail forex volume is in the grand scheme of the market.
This means that the orders I can see in my trader is ONLY the orders created by MY SPECFIFC brookers customers. How reliable is this for short-term trading? This must depend on how many brookers there are out there? How is the total volume of the market spread among those brokers?
Really, that information has to come from the dealing desks in the intra-bank market, which means having contacts.
Is there any other way to get a clue about the orders put on the market and the volume going through it?
Depends on how what you're trying to do, but it's certainly possible.
I've heard that you can trade FX intraday without having any information about the voulme in the market. What do you think?
The futures and spot rates will be closely linked, and you may get an indication of what volume looks like in general terms, but keep in mind that the futures contracts will also largely reflect the pattern of their timezone. For example, the CME contracts are generally going to see much more volume during the US day than outside of it.
Someone told me to use the orderdepth/orderflow of the most liquid futures contract of the specific FX-pair. Those are traded at CME Chicago, right? What do you think about that? Then you get at least the complete picture of the futures contract because it is traded at an exchange, but how reliable is this for trading the underlying FX-pair?
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