Hello all,
I have couple questions please about the volume indicator and Forex.
I have found out that volume has less use in forex because forex is a decentralized market and I can only see the volume created by the users of my broker. That makes sense. So far no issues.
How come VWAP is heavily used in forex then? Especially with gold and oil CFDs. Because VWAP uses volume data right?
Can anyone please clarify?
Thank you.
Hi, maybe you can introduce yourself? 
It isn’t.
You’re right that VWAP uses volume data. That’s why people using VWAP are either trading futures, for which volume data is available, or are at the very least using futures data (available so cheaply that you could call it “almost free”) to trade CFD’s - though why anyone would want to do that is beyond me, I admit.
I don’t know whether they can.
I know for sure that a CFD/spot trading forum for beginners (where the majority of the members, bless them, appear not quite to appreciate that the “volume data” supplied by their “broker” represents only the transactions of their “broker’s” other retail clients) may not be the ideal place to ask.
You’re right, volume in Forex only shows what’s happening through your broker since it’s a decentralized market. Yet, VWAP is popular even in Forex for gold and oil CFDs because it still offers useful insights with the volume data it uses. It helps spot trends and liquidity levels, which can be super helpful, even with limited data.
Hellooo! 
I feel like Jane and Thomas have already addressed your question, but maybe checking this out might also help. 
It’s not really just a definition but also talks about how volume is used in technical analysis so it might not be completely useless.
While Forex volume data is limited, VWAP (Volume Weighted Average Price) can still be relevant in Forex, especially with CFDs like gold and oil. VWAP considers volume and price, providing insight into average price levels traded throughout the day, aiding in trade analysis.
When we trade CFD in an exchange, volume can be considered. If we trade CFD as on OTC product, volume is useless. Most volume shows by OTC broker is volume they got from liquidity provider / LP. We won’t know what the LP is. It can be a well established company or a tiny market maker.
Volume only can be used when you trade in a real market.
For trading CFDs like gold, you can follow VWAP(Volume Weighted Average Price).
I know exactly what you mean.
When I first found out about VWAP, it was a bit of a struggle. But once I learned how to use it, I found it to be very useful for keeping my trading account safe, especially when the markets get volatile.
VWAP helps me figure out which currencies are strong and which currencies might not be performing so well. Buying near the VWAP is considered favorable, while selling is considered favorable when the price drops below it.
This is great for deciding which forex pairs to focus on. It can also be applied to commodity (such as gold and oil) trading.
And it’s not just for me—big institutional traders and fancy algorithms use VWAP too. They rely on it to make big trades smoothly and with less impact on the market.
I hope this helps!
Yup Ria, I was thinking the same thing: search it in baby pips to start your answer. I read your link and it gave a great answer and reinforced my thoughts on it. Thanks!
Unlike a centralized trading system, trading CFD’s does not offer real volume analysis. It only offers tick volume analysis where it counts each incremental price movement or tick and tallies it up as volume. So in reality it is useless. Also in regards to Forex (currency exchange trading) CFD’s the volume traded is so large and hidden due to the many different ways currency exchange can be traded from direct interbank trading, travelers exchanging currency for holidays, business exchanging money for overseas transactions and the list goes on. Each day the volume traded is so large and majority undocumented that currency trading using order flow volume analysis is tricky.
Saying that tick volume in forex trading is useless is plain expression of a lack of proper understanding of its immense value in reading the markets. Volume Spread Analysis is a type of market analysis concept which incorporates the use of tick volume. At a popular forum, there is a scalping thread with more than two thousand pages where the tick volume makes one of the key indicators for executing trades. Volume is not useless as some think it is. I shall forever be grateful to the late Tom Williams, the father of VSA, for revealing the use, value, and strength of tick volume to the world.
I completely relate to and agree with everything you say above about tick volume.
Still, to avoid confusion, I hope you won’t mind my also mentioning (because - with absolutely no disrespect to anyone! - I’m pretty sure that not many of this forum’s members will be familiar with it) that “volume” and “tick volume” are two different things.
The original question is about volume (not tick volume), which - exactly as correctly mentioned above by @S_Jane_M , @TYGMedia and @BAD14214 - is of course not available for spot forex/CFDs.
As so often, trading terminology seems to be designed to confuse those trying to learn! 
Hmm. True volume is not available in the forex markets. In that sense, I may have nothing to say. However, if there is anything that comes close to the use of true volume in the markets that will be the tick volume indicator. Volume (tick) is not useless in forex. I trade blind without it.
No,it’s not don’t use volume in forex use momentum indicators